Showing results:
Displaying 1 - 2 of 2
Management Options - LBO
I came across the below in an LBO modelling question. What do they mean by "option strike price is set at Sponsor's original cost"? Can you walkthrough how this will be dealt with? "Management have agreed to a 5% option pool that will be fully allocated at closing. The option strike price is set at...
Do you use the Treasury Stock Method when calculating Ownership in an LBO test with Mgmt Option Pool?
I've noticed it seems that sometimes it's used, and sometimes it's not. On a model test, should it be used? Taking an example...assume: -Initial Sponsor Equity **= $100 (no mgmt rollover) -Exit Equity Value = $200 -Mgmt Option Pool = 10%, strike at initial sponsor equity -Shares Outstanding...
or Want to Sign up with your social account?