What is a corporate rollover agreement?

Answer 1

A corporate rollover agreement is a financial arrangement where an investor exchanges their investment in one company for an equity stake in another company, typically during a merger or acquisition. This agreement allows investors to defer taxes on capital gains by reinvesting their proceeds. It often involves the transfer of shares or assets, enabling a smoother transition and alignment of interests between the involved parties. Such agreements are commonly used in private equity and venture capital transactions.