Equity Rollover for Specialty Construction Independent Sponsors
Independent sponsor counsel for specialty construction, focused on Equity Rollover and the deal mechanics that protect sponsor economics and LP alignment.
The economics on a specialty construction platform deal usually hinge on a handful of structural decisions. Equity Rollover is one of them.
The typical specialty construction platform sits at $8M to $110M EV with EBITDA in the $2M to $18M range. The thesis runs on trade-specific buy-ups (roofing, mechanical, electrical, fire protection). Bonding capacity is the gate. Without it, the independent sponsor deal stalls at the first big project bid post-close.
How Equity Rollover actually gets structured.
Anchor on 15 to 25 percent rollover for a clean alignment story.
Treat rollover as tax-deferred under Section 351 or 721 where the structure allows.
Document tag-along and drag-along rights at the rollover level, not just at the LP level.
Cap exit veto rights for rolled equity to avoid future deadlock.
In specialty construction, layer in surety pre-qualification for the buyer entity as part of the Equity Rollover workstream.
Rolling at the wrong entity level, triggering an immediate tax event on what was supposed to be deferred.
"Rollover is the cheapest alignment tool on the table. Use it; do not abuse it."Jason Powell · Equity Rollover
The deal is one thing. The capital that opens up after close is another.
Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.
Related deal pages.
LOI Negotiation for Specialty Construction
The 4 to 8 page agreement that frames the deal economics, exclusivity, and diligence period.
Independent Sponsor Economics for Specialty Construction
The package of deal-by-deal carry, management fees, and transaction fees that compensates the independent spo…
Management Fee Structuring for Specialty Construction
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
Earnout Structures for Specialty Construction
Deferred purchase price contingent on post-close performance, used to bridge buyer-seller valuation gaps.
Equity Rollover for Healthcare Services
roll-up of physician practices and ancillary service lines
Equity Rollover for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
An LOI on the desk, a specialty construction target, and a Equity Rollover question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.