Feature in an acquisition where existing equity owners such as high-ranking managers or founders, partially or fully, roll their equity stake into the new capital structure used to acquire the target company. This common feature is very appealing to Private Equity investors since it increases the alignment of the sponsor’s and founder’s interests.
The glossary is provided to you solely for your information. Comments or statements made by Leverest, expressed or implied, do not constitute a guarantee of any kind. No reader may rely upon Leverest with respect to the accuracy or completeness of the glossary information.