Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use Rollover Equity in Acquisitions
When a founder sells their company, cashing out isn't the only option. Rolling equity into the acquirer's stock can defer taxes, align incentives, and signal confidence. Using the LinkedIn-Microsoft acquisition as a case study—where Reid Hoffman rolled over roughly $450 million in shares—this episode explores how rollover equity works, the tax advantages under IRS Section 368, and the risks like concentration and stock drops. We also discuss collar agreements, hedging strategies, and when this structure makes sense, including a look at the Adobe-Figma deal. With today's high…
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