In a sale or merger, the transaction consideration could be in the form of cash, public or private stock, and possibly additional contingent consideration. Various tax and hedging strategies could be employed to ensure the risks associated with holding a large block of shares is minimized.
A private equity sponsored recap offers financial security, equity retention, and value gains through deleveraging, accretive add-on deals, and a potential increase in the exit multiple.
ESOPs allow owners to reward employees by making tax-favored contributions for the company’s employees in the form of company ownership.
An initial public offering enables the company's shareholders to retain equity and provides some liquidity to majority shareholders.
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