Buyer Beware:  Understanding the impacts of the private company council election and rollover equity on deal value

Buyer Beware: Understanding the impacts of the private company council election and rollover equity on deal value

pinehill | 2018-10-17

In this paper, our valuation experts take a close look at two issues, that if not properly accounted for, could impact the value of your business. Although not new, many private companies involved in business combinations do not understand the tradeoffs in the FASB private company council election and whether or not the perceived benefits outweigh the potential future costs. Valuation issues related to rollover equity can occur when management receives a different class of equity than that invested by the acquirer.  Read our publication to understand how to these accounting issues can affect your business and what auditors will expect.

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