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Goodwin Reports on Latest Trends in Private Equity Rollovers and Incentive Equity in Middle Market BuyoutsGlobal law firm Goodwin announced today the release of its 2018 Rollover and Incentive Equity Survey. Produced by the firm's Private Equity Group, the report focuses on a wide range of recent trends and issues that are critical to private equity investors, entrepreneurs and managers when negotiating a deal. Now in its third iteration, and previously published in 2013 and in 2015, the survey analyzes terms of rollovers and incentive equity in middle market buyouts. Topics include the scope and nature of rollover securities, characteristics of sponsor securities, and terms of sellers' rollover securities. The survey also reviews the structure and size of management equity incentive pools and offers data for incentive equity in terms of vesting equity and buyback prices. "Rollover and incentive equity are among the most important economic aspects of any deal," said John LeClaire, co-founder of Goodwn's Private Equity Group. "Our 2018 Rollover and Incentive Equity Survey is a useful tool that helps facilitate discussions about which terms are appropriate in the context of a particular transaction. We look forward to continuing to partner with our clients and the study's participants as we keep this research up-to-date." "With each edition of our proprietary survey, we have continued to observe and capture the evolution of trends in the middle market," said Jon Herzog, partner in Goodwin's Private Equity and Technology Companies Groups. "Getting rollover and management incentive equity terms right is one of the principal ways a private equity investor can win over a founder or management team." Key survey highlights include:
The full report can be downloaded here. Methodology: The 2018 survey was sent to Goodwin's clients and private equity network with questions covering a wide range of issues critical to understanding the overall approaches and trends in this space. The survey was limited to transactions involving acquisitions of a controlling interest with no particular focus on industry segment or geography. Over 55 responses were received. Goodwin's Private Equity Group is a market leader in the expansive middle market sector, having earned a reputation for notable buyouts, growth equity deals and growth company representations in key sectors such as technology, healthcare, financial and business services, consumer and manufacturing. With over 200 private equity lawyers across the globe, Goodwin represents early through late stage investors and companies, lenders and financial institutions, covering the full life cycle of their investments and financings. In 2017, Goodwin closed the second most buyouts and exits of any firm in the U.S. and the third most in the world. About Goodwin At Goodwin, we use law to achieve unprecedented results for our clients. Our 1,000 plus lawyers across the United States, Europe, and Asia excel at complex transactions, high-stakes litigations and world-class advisory services in the financial, life sciences, private equity, real estate, and technology industries. We partner with our clients to practice law with integrity, ingenuity, agility and ambition. To learn more, visit us at www.goodwinlaw.com and follow us on Twitter (News - Alert) at @goodwinlaw and on LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/20180516005776/en/ |