Rollover Equity in LOI - how to frame?

by a searcher from Stanford University - Graduate School of Business

4 months ago

Would be grateful if someone could share how to write about rollover equity in LOI for an asset sale. How exactly is it structured?

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searcher from The University of Chicago - Booth School of Business

If you are planning to finance it with an SBA loan, it has to be structured as a partial buyout (stock sale). For that purpose, in addition to Josh language above, I would add the resulting percentage ownership. DM me and I can share some language for both a partial stock sale or asset sale financed with conventional debt.

4 months ago | like reply | 0 likes

searcher from University of Virginia-Darden - Darden School of Business

The Stanford Search Fund primer includes some sample legal docs, including an LOI. If I recall correctly, the sample LOI specifically lays out an example of how to structure an equity roll. I have tweaked that template in a few of my LOIs that include equity rolls.

https://www.gsb.stanford.edu/experience/about/centers-institutes/ces/research/search-funds/primer

4 months ago | like reply | 0 likes

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