While the position and leverage of managers are key in the negotiations of private equity deals on the French market, tax uncertainty surrounds the implementation of management packages. The issue is not new, but has a particular resonance following the decisions rendered by the French Supreme Administrative Court in July 2021. This case-law largely opens the door to a taxation of gains from the management package as ordinary income rather than capital gains, with potential impacts on the managers, but also for the targets and, as a result, the financial sponsor.
Xavier Petet and Estelle Philippi come back on the way management packages are structured in France and comment on new market trends one year after this "revolution" of the French tax environment
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