Managers who become owners by working alongside a financial investor know what their company’s prospects are. With a Halder-MBO the same applies to their own financial future.
Working together starts with clear agreements. Usually financial incentives for management will be provided in addition to a shareholding at favourable terms. This might be a performance-related bonus agreement, an option to increase management’s shareholding or a percentage of the potential excess return to the investor upon exit.
Individual solutions will be tailored to the personal circumstances and goals of a manager and the options open to the company. And everyone knows from day one how management’s performance will be rewarded.
