Current stability on the capital market and good prospects for companies experiencing growth create a favorable atmosphere for buying or selling businesses. Whether this involves a trade sale or a stock-market flotation (IPO), all parties involved should consider early on the implications for management compensation and employment contracts, both during the sale phase and the period afterward.
Until such time as a company has been floated, it is possible to make any necessary changes to the articles and recommendations that will apply later on. Once a company has been floated, however, it becomes subject to different conditions and transparency requirements.
It is also important to create incentives for managers that continue to apply after the sale or IPO. This can be particularly challenging where strong incentives are required both for the sale or IPO process itself (exit-oriented compensation for former owners) and also for the day-to-day business later on.
hkp/// group has supported many companies on the road to IPO or trade sale. We help firms develop suitable compensation systems and structures, ensure consistent compensation practice and make sure that all applicable regulations are met.
Trade sales and IPOs also need special incentive systems. These should be in line with general market practice and at the same time guide the workforce in the desired direction. Typical clients include private equity firms and other majority shareholders. Here hkp/// can act based on an extensive market knowledge and enjoy the trust of both parties to the transaction.