Rollover Equity in LOI - how to frame?
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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by a searcher
from Stanford University - Graduate School of Business
in Los Angeles, CA, USA
in Los Angeles, CA, USA
2yrs ago
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by a searcher
2yrs ago
from University of Virginia in Charlottesville, VA, USA
from University of Virginia in Charlottesville, VA, USA
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.
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by a searcher
2yrs ago
from The University of Chicago in Chicago, IL, USA
from The University of Chicago in Chicago, IL, USA
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.
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