Description

Why management needs incentives in LBO transactions, how incentives can be counter-productive, and different incentive schemes.

Learning Objectives

  1. Identify the reasons why management needs incentives in LBO transactions.
  2. Identify how incentives can be counter-productive in LBO transactions.
  3. Identify different types of incentive schemes in LBO transactions, including management equity rollover, preference shares, ratchet mechanisms, and options.