Rollover participants not only invest in the capital of buyers, but are also invited to move from control to minority ownership. Rollover participants should look beyond the dollars and think carefully about what life will be like after closing with their financial buyer. There are many financial buyers who compete for deals, and each of them has a different approach to managing their holding companies. Some financial buyers take a more or less hand-off approach and rely on the goal`s management team to manage the business every day, unless the wheels start to fall. As long as the portfolio company meets its financial performance objectives, the financial buyer`s representatives may only attend monthly or quarterly board meetings. On the other hand, other financial buyers are looking for targets for which they believe a heavy role in the operation is warranted. These buyers regularly maintain a significant presence of their portfolio companies and their representatives often on an almost daily basis in the operation of the business. Regardless of the financial buyer`s participation, the objective`s management team must agree to have exchanged absolute (or almost absolute) control for a minority owner role. After the sale, the financial funder expects to make important decisions and rollover participants generally have little say in capital transactions. The result is that rollover participants should choose their future boss with caution. The first step in choosing the right buyer is for the owners of the target business to know for themselves which closure they can live comfortably with and what type of financial buyers they want as partners. Ideally, rollover participants should take care of the same buyer`s due diligence as they would if approached to make a cash investment in the purchaser. This due diligence would normally include at least one review of the purchaser`s financial statements and governance documents (e.g.
B articles, statutes, shareholders` pact or enterprise agreement).