Is it risky for my rolled equity to not be pari passu for a 30 day period after closing?
I’m in the process of selling my business to private equity. It’s an S-corp and the PE firm set up a put/call exercise option to restructure it into a C-corp after closing in order to take advantage of future QSBS exclusions.
In order for this restructure to happen as planned, my rolled equity would have to go into their newly created middle tier entity for a 30 day period before it can be moved into the top level holding company where the other PE investors are at.
My question is if this is standard and if it is a risk for me to agree to this proposed plan?
Posted Apr 8, 2026, 1:08 PM UTC
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