PT  - JOURNAL ARTICLE
AU  - Darek Klonowski
AU  - Daria Golebiowska-Tataj
TI  - Using Performance-Based Share-Adjustment Mechanisms or “Ratchets” in Economies in Transition
AID  - 10.3905/jpe.2008.710905
DP  - 2008 Aug 31
TA  - The Journal of Private Equity
PG  - 53--62
VI  - 11
IP  - 4
4099  - https://pm-research.com/content/11/4/53.short
4100  - https://pm-research.com/content/11/4/53.full
AB  - While “ratchets” have been widely used by venture capitalists when making transactions in Western countries, these instruments are only now being tested in transition economies. This article focuses on performance-based share adjustment mechanisms, in the context of one of the leading producers of ice cream in Russia. The case describes the challenges of using these types of instruments in the Russian environment.TOPICS: Private equity, emerging, legal/regulatory/public policy, fundamental equity analysis