When calculating the proceeds received at exit for a management team that rolled over their equity, what factor is multiplied with the exit equity value?

To determine the proceeds received at exit for a management team that rolled over their equity, the appropriate factor to multiply with the exit equity value is the management's implied ownership percentage. This percentage represents the portion of equity that the management team retains in the company after the rollover.

When a management team rolls over their equity, they maintain a stake in the company's future value, which means that their return at exit will depend on how much of the company they still own relative to the total equity value. Therefore, multiplying the exit equity value by this ownership percentage provides the management team with their proportional share of the company’s exit value, effectively calculating their proceeds.

This process reflects how much value the management team can realize from their retained equity stake at the point of exit, linking their ownership directly to the overall performance and valuation of the company.