Focus on Private Equity – April 2014

By on April 14, 2014

McDermott Will & Emery has released the April 2014 issue of Focus on Private Equity, which provides insight on issues surrounding private equity transactions and the investment life cycle across industries.  Articles in this issue include:

Private Equity Firms Face Potential Liability Under Plant Closing Laws
Private equity firms risk potential liability for Worker Adjustment and Retraining Notification Act violations. Case examples demonstrate the need for proactive activity management, including observing corporate formalities, establishing and filling the director and officer positions of all entities, permitting the operating company management to make the decisions regarding employment terminations and plant closings, and clearly communicating and documenting these activities, to help avoid or quickly exit litigation.
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Incentivising Management Across the Pond
U.S. private equity investors are increasingly looking outside the domestic market and into the United Kingdom and Europe to deploy dry powder.  As the buy-out market in the United Kingdom heats up, U.S. private equity investors should be aware of tax-efficient structures to deliver equity incentives to U.K. resident management teams in order to maintain a competitive edge. In this article, we’ll explore the significant negative consequences of issuing U.S.-style stock options to U.K. resident management teams and the significant tax savings that can be obtained with restricted stock, enterprise management incentive options and structuring incentive equity to obtain Entrepreneurs’ Relief.
Read the full article.