Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
How the Rollover Equity Trap Hurts Founder Sellers
Lucas and Luna break down the rollover equity trap in M&A — the clause that forces founder sellers to keep a stake in a business they no longer control. Using the 2023 acquisition of cloud security startup Wiz by Alphabet as a durable case, they explain how rollover equity can defer tax, align incentives, and then silently erode value when the buyer's strategy shifts. They walk through the mechanics: the conversion ratio, the liquidation preference cascade, the information rights gap, and the single most important question a founder should ask before signing. If you are a business…
The skinny
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