Our Rollover and Incentive Equity Terms Middle Market Survey, originally published in 2013, covers terms of rollovers and incentive equity in middle market buyouts and majority recaps. Our initial survey was prompted by the lack of studies or data on these topics. We found this particularly striking given the importance of these topics to private equity investors, entrepreneurs and managers alike, especially in light of the existence of exhaustive studies on other matters such as M&A terms for private acquisitions.
Survey Overview
Expand the drop-down sections below to learn more about our survey.
We sent the 2018 survey to our network of private equity clients and friends to participate in. We received responses from over 55 individuals, and the survey questions covered a wide range of issues critical to understanding the overall approaches and trends in this space. Our resulting findings provide a high-level qualitative assessment of factors ancillary to transactions, from performance vesting and time-based vesting to characteristics of sponsor securities.
This survey can serve as a tool to determine and ensure that your position is within the realm of the market. Handling rollover and management incentive equity terms appropriately during a transaction can dictate the outcome for a private equity investor; knowing how to structure win-win solutions and the unwritten rules and norms of the middle market are, therefore, critical.
Relative to our 2015 survey, the size of required and actual rollovers has decreased. We hypothesize that this is a result of the continued robust debt market and higher valuations, which enable sellers to rollover a meaningful amount of capital even at a lower percentage.
Top 2018 Takeaways
Watch Goodwin partner Jon Herzog discuss some of the results of the 2018 Rollover and Incentive Equity in Middle Markets Survey.
Related Content
- In the PressJuly 5, 2018
Midmarket Sellers Are Keeping Less Skin in the Game (The Wall Street Journal)
- In the PressMay 31, 2018
Sellers Gain Upper Hand in Private Equity Deals, Finds Goodwin Rollover Report (Mergers & Acquisitions)
- Press ReleaseMay 16, 2018
Goodwin Reports on Latest Trends in Private Equity Rollovers and Incentive Equity in Middle Market Buyouts
- In the PressMay 15, 2018
Soaring Valuations Hit Rollover Terms (published in Private Equity International)
- Press ReleaseJune 11, 2015
Goodwin’s Private Equity Practice Releases 2015 Rollover and Incentive Equity Study
