Hedge funds and Private Equity - PES

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2.4 Corporate governance and economics
Financial sponsors have been actively involved in the process of building a strong management
team. During the second LBO a new Financial Director and Development Director were introduced
in order to reinforce the team.
In the third LBO there was a change of CEO as the historic CEO retired.
2.5 Protection of minority shareholders
Not applicable. In the case of Frans Bonhomme there is no minority shareholders at risk as the
only owners are professional financial investors, and the Management team.
2.6 Management policies and shareholder activism: stock option
programmes, effects on board and CEO’s, management fees,
employee information
With the fourth LBO the number of employees participating in the transaction has been
increased from 500 to 800.
2.7 Effects on public finances
Those of a growing business, i.e. more employment, more consumption and thus more income
for the state.
3. LBO exit (secondary, LBO, listing)
Depending on market conditions BC Partners may envisage a third LBO but the company
could also be eligible for a trade sale (as was the case in 1994) or, given the growth profile, an
IPO.