Hot Topics for Private Equity Houses - Underwater Management Equity |
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In this current climate of distressed situations and reductions in company
valuations - Underwater Management Equity is an issue facing many PE backed
businesses.
In this video, the next in our series of Hot Topics for Private Equity, we
discuss some of the possible solutions to Underwater Management Equity and how
PE Houses should be proactive in addressing the situation. We look at the
enterprise value going forward and what can be done around equity and debt
structures with particular regard to resetting management incentives. We also
discuss the effect that the differing views of stakeholders will have, banks,
new management teams and possibly restructuring officers and the best way to
create value now that equity is not the driving factor.
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