Rollover Equity: What Sellers Should Know
In this episode we featured a very seasoned M & A advisor, whose background as a serial entrepreneur proves to serve his clients in a big way, especially when the deal structure gets a bit complicated. Michael Hubsmith, Senior Advisor with True North M & A joined us to talk about Rollover Equity; what it is and why sellers should consider it as a viable option to a future exit.
Say for instance, you've run a profitable, growing business in the lower end of the lower middle market ($5-15M in annual sales) and you know that your business has great potential for growth, but you'd like to take a step back. Your business could be a prime candidate for what Michael shared in this episode.
Rising interest rates are impacting how financing is done on M & A deals. Private Equity Groups (PEGs) have money to invest, but they're not as prone to requiring 100% ownership stake as in the past. When a seller is bullish on the future of their business, but wants to take a few chips off the table, a partial sale to a PEG could be the perfect fit.
As a seller, you may think your business is a candidate for such a transition as this. It's important that you seek advice right away, to determine if it's a viable option. Michael is open to preliminary discussion any time. You can reach him at mhubsmith@tnma.com or 612-850-6540
Much more to learn from Michael in this episode; listen now.
Connect with Michael Hubsmith and Julie Keyes here
Thank you to this month’s sponsor! Sunbelt Business Advisorsand TrustPoint
Connect with Julie Keyes, Keyestrategies LLC
Founder, Consultant, Author, Pod-caster and Instructor
