Johnson’s published article offers readers a robust discussion about the valuation considerations for rollover equity in private equity platform acquisitions and add-on deals. “Rollover equity arises when certain equity holders in the target company, including founders, and key members of the management team, roll a portion of their ownership stake over into the new equity capital structure put in place by the acquiring PE firm in lieu of receiving cash proceeds.”
Read the full article: Rollover Equity for PE Deals: Issues and Solutions
Webcast: Deal Structuring in Volatile Markets
Practical considerations, such as implementing rollover equity or earnout structures, can help mitigate risk when pursuing transactions in a volatile market, like one caused by a global pandemic.