Seller rollover equity and earnout

by a searcher from University of Toronto - Joseph L. Rotman School of Management

1 year ago

I am in the process of submitting an IOI for a transaction in which the seller has a set below clearing price. I will like to have the seller rollover some of the proceeds as equity and I plan to add an earnout as an incentive. I would like to get the view of the search fund community if this is a reasonable structure. Please share your view. Thanks

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intermediary from Vanderbilt University

This is a fine structure, but I suggest you have a short transition period as I suspect you'll want to take things over sooner rather than later.

1 year ago | like reply | 0 likes

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