medium · Investment Banking
In an LBO, what is the 'Management Rollover' and where does it appear?
- Existing management keeps their equity in the new deal; appears as a Source of funds
- Management is paid a special cash retention bonus for staying on; appears as a Use of funds
- The process by which management effectively becomes a new lender group; appears as Debt
- The annual bonus schedule; it appears on the Income Statement each year
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