Deal Structuring
Management Rollover Equity
A structure where existing promoters or key managers reinvest a portion of their sale proceeds into equity of the post-acquisition entity, aligning incentives with the new owner.
Buyer Example
Search fund buyer acquiring an ₹18 Cr Jaipur B2B manufacturing business requires the outgoing promoter to roll over 15% (₹2.7 Cr) of proceeds into new-entity equity, ensuring the promoter stays financially motivated through a 2-year transition period and reducing the buyer's execution risk on customer and vendor relationship continuity.