Retaining Equity vs Rolling Equity

Rolling equity involves sellers retaining a portion of their equity in a new company structure, often used by private equity firms for future exits. Retaining equity, on the other hand, means sellers keep a stake in their original business, maintaining operational control and potentially sharing services with a broader consortium. Both options have risks and rewards, and the choice depends on the seller's goals, the strength of the buying firm, and the strategic fit. Tune in as we talk through both options. Here is an example of one of our clients that represented a deal with rolling equity. Learn more about Project Black Sparrow >>   RELATED EPISODES: Episode 196: Breaking Down the Successful Sale of a $19M MSP. Listen now >> Episode 184: How Cultural Fit Drives Successful M&A. Listen now >> Episode 170: How to Become a Platform Investment. Listen now >> Episode 150: Overview of Rolling Equity in an M&A Transaction for a Seller. Listen now >> Episode 112: Why Culture Matters in Tech Focused M&A Feat. Chelsey Nord. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.