The compilation of management packages is a common practice of companies or private equity funds, whereby the interests of key employees are aligned with the interests of the company through equity participation. This strategic instrument is used in particular in the context of LBO transactions (leveraged buyouts).
 
Management Packages must meet several objectives

 
  • The motivation of key persons (possibility of management circles) through performance-related remuneration;
  • Aligning the interests of managers with the interests of shareholders;
The ability as a manager to achieve a higher leverage effect than financial investors;
Under certain circumstances, preparation of a future management takeover.
Financial Valuation / Financials Instruments / Contexts
NG Finance meets both the requirements of the relevant tax authorities and those of its clients with regard to the transparency of the valuation approaches applied. The Reports provide a detailed description of the legal and financial aspects and explain to the reader the mechanisms of the Valued Financial Instruments.
 
Our work is based on a multicriteria approach: Monte Carlo methods, Lattice methods, Black & Scholes, Digital options, etc.
 
  • Warrants ;
 
  • Preffered shares ;
In the context of LBOs, these financial instruments perform in relation to the achievement of certain financial objectives such as a multiple (the multiplication of the original investment amount) and/or an Internal Rate of Return (IRR). Payments to their holders.
  • Convertible bonds ;
  • Free allocation of ordinary shares;
 
  • Share sale promises ;
  • OCEANE, ABSA, etc.
Employee Stock Ownership Plan (ESOPs))
  • The range of services offered by NG Finance covers the entire term of the respective financial instrument: We support our clients in structuring, in the valuation at fair value according to previously defined performance criteria and in any remeasurement at a later date in accordance with IFRS 2 ("Share-based Payment") and IFRS 9 ("Financial Instruments").
Carried interest
 
  • NG Finance supports management companies in the valuation of their investments at fair value. We use internationally recognised methods that are regularly applied by industry professionals. Our methodology also complies with the recommendations of various private equity associations (AFIC, EVCA, BVCA, etc.) and the International Private Equity and Venture Capital Guidelines (IPEV Guidelines).

Social security Liquidation

  • In addition, employer contributions will be reduced to 20% and NG Finance will be involved in determining the net asset value of the employer contributions valid at the time of acquisition.

 
Sweet Equity 
 
  • Our team will assist you in valuing the sweet equities provided by financial investors, such as convertible bonds (convertible into ordinary or preferred shares), warrant bonds with stock warrants, etc.