Legal Terms
the Term Sheet

Rollover Equity

Rollover equity for a med spa is when the seller of the business agrees to keep a portion of their ownership stake after the sale. Instead of cashing out entirely, they reinvest a portion of their proceeds to maintain a share in the business. This arrangement aligns med spa owners’ interests with the new owners and can help ensure a smooth transition and continued success of the med spa.

Rollover equity also allows the med spa owner to benefit from future growth and success of the business.