What is Rollover Equity?
Definition
Purchase price paid to the seller in shares of the buyer entity instead of cash, typically 5% to 25%. Tag-along rights, preemptive rights, and information rights determine whether rollover is meaningful equity or trapped capital.
Frequently asked questions
What is Rollover Equity?
Purchase price paid to the seller in shares of the buyer entity instead of cash, typically 5% to 25%. Tag-along rights, preemptive rights, and information rights determine whether rollover is meaningful equity or trapped capital.
Why does rollover equity matter in a contract?
Risk level: Medium. Without governance protections, rollover is just retained risk. Inkvex flags rollover equity clauses during analysis, explains the risk in plain English, and suggests negotiation language to protect your interests.
How does Inkvex analyze rollover equity clauses?
Inkvex scans your contract for rollover equity-related clauses, flags risks in plain English, quotes the exact language from your document, and cites jurisdiction-specific laws that may affect enforceability. Upload any contract at inkvex.app for a free analysis.
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