“This study adopts a “mixed research methods” approach in order to try to identify the most common management incentive packages (MIP) and mechanisms used in companies under leveraged buyout (LBO), namely in France, and what other non-pay related factors influence the motivational effects of these MIPs and ultimately the value creation expected from the LBO. It quantitatively analyses data – obtained from the sponsoring investment bank – on French companies currently under LBO and uses the findings to design questions for semi-structured interviews conducted with sources having vast experience in Mergers and Acquisitions (M&A) and Private Equity (PE). It is the analysis of this qualitative data using axial coding and subsequent discussion that compose this study’s main findings, as the often-undervalued management motivation aspects are extremely important to understand this vastly understudied topic.” Francesco da Costa Gatta.(+)
