An equity kicker is a type of equity incentive typically issued in combination with privately placed subordinated or mezzanine debt to improve the return for subordinated debtholders. Equity kickers can have a convertible feature exchangeable for shares or warrants to purchase shares at a set price at some point in the future.
The middle market represent one-third of private sector GDP and employ approximately 25% of the total labor force. Yet, it is estimated 70% of mid market businesses can never be sold. Michael Nall, Founder of the AM&AA, provides his insight on this concerning statistic.
Deciding to Sell
Upper Middle Market
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Noah Rosenfarb, CPA/ABV/PFS has devoted his career to advising business owners on all things related to money. He is a Personal CFO and Holistic Wealth Coach at Freedom Exit Advisors, which provides middle market business owners guidance on how to successfully transition out of the management and or ownership of their company. Mr. Rosenfarb is the author of EXIT: Healthy, Wealthy and Wise and co-hosts the Divestopedia podcast where he is both a contributor and Advisory Board member.
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