When part of the purchase price is not paid in cash but stays invested in the company: this guide explains how rollover equity works, where value is created — and where the traps are.
Rollover, sweet equity and co-investment compared
Worked example including the waterfall
Seven negotiation points for sellers
PDF · 14 pages
Contents
Three chapters, one decision framework
Chapter 1
Fundamentals & structures
Why buyers ask for rollover equity — and how rollover, sweet equity and co-investment change your stake, your upside and your control after the sale.
Chapter 2
Valuation, dilution & worked example
How entry valuation, liquidation preference and dilution determine what your rolled-over stake is really worth — including a full waterfall.
Chapter 3
Risks, taxes & negotiation
The six risks that erode rollover equity, the tax levers for your net return and seven points that secure your position.
Voices
What founders and advisers say
“I read this before my first adviser meeting — it completely changed how we negotiated the structure.”
Sophie van de BergFounder of a mid-sized software company
Author
Who wrote the guide
Felix BuschkotteAdvisor @ Feldberg
IT entrepreneur with more than seven years of experience and a successful exit. He supported the sale of his own family business and advised on numerous private equity acquisitions.
Free for sellers
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14 pages, built for owners, founders and their advisers. No sharing, no spam.
Chapter 1
PDF · 14 pages
Chapter 2
Chapter 3
Felix BuschkotteAdvisor @ Feldberg