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Rollover Equity Wiped Out Following Employment Termination

You rolled equity when you sold your company. Then they fired you. Now it’s gone. Your rollover equity shouldn’t vanish just because you quit—or got pushed out. But it can… if you don’t negotiate the right terms.

Founders might roll 10–20% of the deal into the new company. Then they leave—and they can lose it all. Why? Because they never decoupled the rollover from their employment.

Buyers love to tie your equity to your job—whether it’s via vesting, repurchase rights, or outright forfeiture. And the longer you wait to address this problem during the deal, the weaker your position gets.

Your “second bite at the apple”? It can disappear overnight if you get this step wrong. Here’s the fix:

  • Lock in your rollover equity for the long term independent of your employment
  • Push back on repurchase rights tied to working there
  • Protect your upside like it’s cash—because it is (and hopefully it’s going to be multiples of cash
    on the value you rolled).

Follow me for real-world rollover equity tips—so you don’t get played.

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