Rollover Equity or Partial Equity deal

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by a searcher from Duke University - The Fuqua School of Business
in New York, NY, USA

1yr ago

Rollover Equity or Partial Equity deal

Has anyone successfully executed a rollover equity or partial equity deal whereby they first acquired a majority interest from the seller and subsequently acquired the remaining minority interest? I would be interested in hearing about the cap table at closing, structuring of your SBA loan, governance with the seller, the subsequent buyout, and any other lessons learned.

Best,
Shawn

1 Like

201 Views

reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. We are doing many partial business acquisitions this year with the new SBA partial business acquisitions rules, but none of them are aged enough where the buyer is now acquiring the rest of the business. We have seen more traditionally financed transactions from past years where the seller has rolled equity and the buyer eventually bought them out. Happy to talk about how to structure SBA partial business acquisitions. You can reach me here or directly at redacted

reply by a searcher 1yr ago
from Ivey Business School at Western University in Victoria, BC, Canada

Thanks for the tag ^redacted‌. My main takeaway was that this is an uphill battle with sellers, and where there is s broker, may complicate matters due to the commission payout on their end not anticipating such a structure. It is a good test, however, of the seller's timeline.