For business owners considering a future sale, charitable giving can be an important part of the planning process long before a transaction closes.

Mike Booth, Senior Gift Planner with National Christian Foundation, joins The Sell Side to discuss how business owners can incorporate charitable giving into an exit strategy. Mike breaks down donor-advised funds, gifting appreciated business interests, the importance of timing a gift before a binding sale, and the differences that can come with C corporations and S corporations.

The conversation also covers qualified appraisals, estate planning, rollover equity, earn-outs, and why getting your M&A, wealth, tax, and charitable advisors involved early can create more options for business owners and their families.

In this episode, we break down the concept of rollover equity, a common and crucial topic that frequently arises during mergers and acquisitions (M&A) transactions.

• The Basics of Rollover Equity: What it means to transition from a 100% owner to rolling a portion of your sale proceeds into the equity of the newly acquired company instead of taking it all in cash.
• The Role of Private Equity: Why private equity firms routinely insist on a 10% to 30% rollover structure to keep sellers incentivized and invested in the new entity's future success.
• The "Second Bite of the Apple": How younger sellers looking to stay in management roles can leverage rollover equity to secure massive value, sometimes even surpassing the original sale consideration.
• The Trust Factor: Why giving up control means you must have confidence in the acquiring firm's vision and execution strategy to maximize the value of your equity.

Whether you are preparing for a business sale or navigating an ongoing deal, this episode provides foundational insights into how rollover equity can work for you.

In this episode, host Michael Stanley sits down with Zane Tarence, partner at Founders Advisors and author of The 17 Reasons Your Company Is Not Investment Grade. Drawing from his transition from an IBM software engineer to a successful tech entrepreneur and veteran middle-market investment banker, Tarence unpacks what it truly means for a private company to be "investment grade".

He breaks down the critical levers that drive business valuation, emphasizing the power of hiring A-players, weaponizing clean financials through predictive modeling rather than just tax avoidance, and engineering highly valuable recurring revenue streams. Tarence also addresses common founder pitfalls, from customer concentration risks to managing the entrepreneurial ego when working out of the business to build transferable value. Whether you plan to sell soon, raise capital, or scale sustainably, this episode provides a strategic roadmap to giving your private business its own valuation "ticker symbol".

https://www.linkedin.com/in/zane-tarence-22375323/

https://www.linkedin.com/in/michael-k-stanley-jr-mba-cexp™-30916131/

Use our complimentary code KeelPoint_FA to take the Founders' Investment Grade Assessment.

Disclaimer: To provide securities-related services, certain principals of Founders Advisors, LLC are licensed with Founders M&A Advisory, LLC, member of FINRA & SiPC. Founders M&A Advisory is a wholly owned subsidiary of Founders Advisors. Neither Founders Advisors nor Founders M&A Advisory provide investment advice.