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1Inanyprivateequitytransactionthearchitectureorolloverequityandmanagementincentiveequityiscriticallyimportant.Whileexhaustivestudiesexistonothermatterssuchastransactiontermsintheacquisitioncontextorthecontoursomanage-mentequityinpubliccompaniesthereislittlepubliclyavailabledataconcerningrolloversandmanagementincentiveequityinprivateequitytransactions.HowwediditWesentoursurveytoournetworkoprivateequityclientsandriendsprincipallyinthemiddlemarket.Respondentswerepromisedconfdentialityastoboththeiridentitiesandtheirspecifcresponses.Ourinquirywaslimitedtotransactionsinvolv-ingacquisitionsoacontrollinginterest.Therewasnoocusonanyparticularindustrysegmentorgeography.Wereceivedcompletedresponsesromover50frms.HowitcanbehelpfulBeingabletociteastudyonaparticularpointrarelyieverwinsapointoryourside.Howevertheuseosuchstudiescanquicklyandefcientlyconvincetheothersidethatyourpositionisnotnovelnorunheardoorthecommonlyusednotmarket.Thisstudyisintendedtobeatooltohelpacilitatediscussionowhattermsareappropriateinthecontextoaparticulartransactionandmorebroadlytoprovideinsightintoanimportantaspectomiddlemarkettransactions.Moresignifcantlygettingrolloverandmanagementincentiveequitytermsrightisoneotheprincipalwaysafnancialspon-sorcanwinoveraounderormanagementteam.Fromtheirperspectiverolloverandincentiveequityareamongthemostimportanteconomicaspectsoabuy-outtransaction.Knowinghowtostructurewin-winsolutionsisthereorecritical.ThefutureofthisstudyWeintendtomakethisstudyalivingdocumentthatwillbeupdatedandexpandedperiodicallyovertime.Weplantocapturetheevolutionotrendsandalongthewayaddareasosubjectmatterthatwillbeointeresttotheparticipantsinandreadersothisstudy.TothatendiyouhavenotyetparticipatedandwouldliketodosoiyouwerenotontheoriginalmailinglistandwouldliketobeoriyouhavesuggestionsoradditionalquestionsortopicspleasecontacteitherJohnLeClairejleclairegoodwinprocter.comorJonHerzogjherzoggoodwinprocter.com.aboutthIssuRveyGoodwinProcterRolloverSurvey