As a result of high purchase prices, leveraged buy-outs can be burdened with inappropriate or dysfunctional capital structures. The client, a successful, strongly performing business had been acquired in such circumstances. Consequently it was unlikely that the management shareholders would realise value for their equity. This lack of clear management incentivisation was unsatisfactory for not only the management team but also their debt and equity finance partners.

Appointed by the company, on behalf of all parties, PPCF designed and implemented a revised management incentive scheme.