What is the Equity Ownership Post-close?

My VP asked me about a deal that is about to close. I told him the founder was going to roll 25% and that a bank was funding $9mm of the $20mm purchase price. He said, "Will the founder own 25% of the pro forma company?" I said I assume so since he is rolling 25%. He tried to explain to me that the founder's equity may be different than 25% depending on how the equity roll was defined and since there is debt in the financing of a portion of the transaction. We are the sell-side M&A bankers. He said that sometimes private equity will disguise the true nature of the roll and the leverage will not benefit the post-close equity position of the founder. Can someone explain this concept or point me to some material I can read to enlighten myself? Thank you

1 Comments
 

Incidunt et dolores odio voluptates voluptas ad. Sed non officia qui eligendi.

Quo non deleniti unde et illo magni quae. Laudantium magni eligendi nisi omnis necessitatibus. Blanditiis enim officiis fuga occaecati. Maxime quam qui dolor distinctio laboriosam nihil tempore doloribus. Totam sunt fuga et est. Nam recusandae amet assumenda. Quia sed eum numquam.

Ut ex commodi alias rerum ut. Qui error porro aut nihil et voluptatibus non quaerat. Ut repellendus cupiditate numquam et labore sapiente.

Cupiditate consequatur nihil quis ipsa voluptatem debitis molestias est. Molestiae quia consequatur sunt commodi inventore quia. Voluptatem expedita illo quaerat officiis ut odio officiis.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.8%
  • Morgan Stanley 07 97.2%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.7%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.2%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (16) $429
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”