Ensuring a smooth and amicable process when negotiating incentives between shareholders and management can seem like an impossible task at the outset however with the help of independent advisors, this endeavour is made significantly easier for all parties to a process.
This was the focus of our recent event in Milan where key figures from the Italian Private Equity community had the opportunity to engage in in-depth discussions around the nuances involved in ensuring a successful transaction.
This event, held by Jamieson Corporate Finance with esteemed law firm Giliberti Triscornia e Associati, provided a platform for guests to learn more about recent trends and developments in the European Private Equity Market and explore the benefits of timely and open discussions around the MIP when undertaking a new process.
Utilising the extensive experience of MIP specialist lawyers and global management advisory specialists, participants benefited from insights and case studies illustrating the variance in process and structure to be adopted. With an extensive Q&A session following the main presentation from our experts, guests left with an in-depth knowledge of how to navigate conversations with confidence and ensure a positive outcome.
The key takeaways from this event are as follows:
- Explore all options – When approaching a MIP negotiation, it is important to define all possible exit scenarios to protect the managers interests value and ensure that the MIP works to protect the value.
- Plan ahead – As a number of different possible scenarios may be presented, it is important to plan ahead to mitigate against any last minute changes or hold-ups in the process. Identifying the team you wish to go forward with and understanding how you will incentivise them is critical.
- Determine commercial priorities – Once you have established the priorities for the business and objectives to be achieved then messages to the team can be tailored accordingly. This allows for consistency and optimum transparency throughout the process.
- Select your advisors with care – Having experienced advisors who can lead negotiations with investors and protect you from difficult discussions can ultimately determine the condition of relationships following a transaction. Appointing a team with extensive experience and knowledge of deals in your sector will allow you to remain proactive and robust.
- Data is key – The importance of utilising data to inform the process and drive better terms. This ensures the process goes smoothly for all parties involved and allows the management team to achieve a fair result whilst avoiding unrealistic expectations.
Should you wish to obtain more information on any of the topics discussed during this roundtable event, or relating to an upcoming process, please do not hesitate to contact the Jamieson Corporate Finance team on the details below.
Stuart Coventry – scoventry@jamiesoncf.com
Andrew Cox – acox@jamiesoncf.com
Giovanni Poggio – gpoggio@jamiesoncf.com
Luca Lupone – llupone@jamiesoncf.com
