Five Highlights of Rollover Equity and Management-Equity Incentives

Both rollover equity and management-equity incentives have become increasingly common during the sale process of a business, especially when selling to a financial investor like private equity or a family office. As a result, owner-operators pursuing a liquidity event should become familiar with these incentives and five key concepts—including impact on business valuation and oversight—that can help keep them committed to the company’s success while aligning the long-term financial interests for the next sale.