Envy Ratio

Envy Ratio - envy ratio is a calculation used after a buy out of a company... This entails finding out how much the management company spent, versus the investment company, and then examining how much equity each party received... The envy ratio is very similar to the concept of leverage. Envy Ratio is primarily too figured out who spent more, and who received more between the management company and the investment company. ..Managers generally get incentives to purchase shares at a lower price so they work harder to make the company successful. The Envy ratio determines who received more, and who paid in more.