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.
Seller Example
Promoter of an ₹18 Cr Jaipur B2B manufacturing business negotiates the rollover percentage down from the buyer's proposed 25% to 15%, and secures a contractual put option letting him force the buyer to purchase his rollover stake at a pre-agreed multiple after 3 years — converting what could be an illiquid minority holding into a defined future cash-out.