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In a management buyout, the envy ratio is the ratio between the price paid for a share in the company’s equity by the private equity investors involved and that paid by the management investors.
Since private equity investors paid a total of USD 40 million for an 80% share in Target, Inc. and managers paid USD 2 million for a 20% share, the envy ratio was 5.
The envy ratio is used to gauge the advantage managers obtain as part of their management buyout (MBO). In a typical MBO, managers receive a bigger piece of the target company for their money than do equity investors. This is to incentivize them to achieve excellent performance. Envy ratios vary greatly depending on the company in question, its sector, the nature of its business, and the economic environment at the time of the MBO.
V odkupu společnosti vedením podniku je poměr závisti poměrem mezi cenou, kterou za podíl na vlastním kapitálu společnosti zaplatili daní private equity investoři, a cenou, kterou zaplatili manažerští investoři.
Jelikož private equity investoři zaplatili celkem 40 milionů za 80% podíl ve společnosti Target, Inc. a manažeři zaplatili 2 miliony za 20% podíl, poměr závisti byl 5.
Poměr závisti se používá ke stanovení výhody, kterou manažeři získají v rámci svého odkupu společnosti vedením podniku. V typickém takovém odkupu manažeři za své peníze dostanou větší kus cílové společnosti. Je tomu proto, aby byli motivováni ke skvělé výkonnosti. Poměry závisti se výrazně liší v závislosti na společnosti, sektor, povaze jejího podnikání, a ekonomickém prostředí v době odkupu.
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Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
