LBO - how to ensure alignment with management?

Hi guys:

I have a rookie question..in an LBO, how do you ensure alignment with management? Is it to give them stocks? How can one analyze what's the best way of doing so? Thanks!

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3 Comments

m_1

PE

7y

There's usually an options pool created for management to perform layered with milestones.

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Authored by: Certified Private Equity Professional - CEOCertified Private Equity Pro

chips_ahoy

IB

7y

Thanks! are there any guides that talk about how to model it/how it flows through model in a simple way please?

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Authored by: Certified Investment Banking Professional - NACertified Investment Banking Pro

OverlyAdjustedEBITDA

PE

7y

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LBO - how to ensure alignment with management?

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