During the first quarter following an acquisition, many companies go through a renewed strategic planning exercise to determine the future course of the organization.
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Estimating equity compensation after an M&密切
Now that there is additional capital and talent available to the company, many organizations will add new members to their senior management team or they may add members to their board of directors.
Many organizations will issue some form of equity compensation, meaning that these individuals will share in the future growth and value of the organization, and these types of equity incentives can come in many different forms. What we see in the private equity space is often something that is more performance based or sales price based. 例如, a management incentive unit that would only pay out if the company is sold within a certain time frame at a multiple of say three times the original investment of the private equity buyer. No matter what type of equity compensation instrument an organization uses, it is important to estimate the fair value of that option grant so that the compensation expense can be recorded appropriately.