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Podcast 136 – Rollover Equity: What Sellers Should Know

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 Advisors and TrustPoint

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Julie Keyes
Julie Keyes

Founder & Owner at KeyeStrategies, LLC

Julie is a Certified Exit Planning Adviser and Value Growth Advisor with 30+ years of experience. She works with business owners who seek to understand and maximize their exit and critical transition options.

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