Seller Rollover Equity Standard in Home Services Acquisitions

The article explains that seller rollover equity (typically 10-30% of consideration) is now standard in home services platform acquisitions, aligning incentives by allowing sellers to participate in the next sale at the higher platform multiple.

“The seller rollover is now standard. Operators who keep 15% to 25% of their proceeds in the new entity participate in the next sale at the platform multiple instead of the lower add-on multiple.”

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