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 operator or an indie founder thinking about an exit, this episode hands you the math you need before your lawyer does. #RolloverEquity #MergersAndAcquisitions #FounderSeller #ExitStrategy #Wiz #Alphabet #CloudSecurity #DealStructure #LiquidationPreference #InformationRights #IndieFounder #TaxDeferral #BusinessSale #MiddleMarketMAndA #FexingoBusiness #BusinessPodcast #AcquisitionTalk #MAndAStrategy Keep every episode free: buymeacoffee.com/fexingo