Equity-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense recognized during the years ended September 30, 2019, 2018 and 2017 is as follows:

	Year ended September 30,
	2019		2018		2017
TRA non-participation compensatory shares	$	—	$	741	$	—
Stock options	6,124		826		—
Equity-based compensation expense	$	6,124	$	1,567	$	—

Fair Value of Stock Option Awards

The fair value of stock option awards during the year ended September 30, 2019 and from June 20, 2018 through September 30, 2018 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:

	September 30, 2019		September 30, 2018
Expected volatility(1)	26.7	%	26.2	%
Expected dividend yield(2)	—	%	—	%
Expected term(3)	6 years		6 years
Risk-free interest rate(4)	2.5	%	2.8	%

_________________

1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

Summary of Stock Option Activity

A summary of stock option activity for the year ended September 30, 2019 is as follows:

	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	2,138,500	$	13.13
Granted	2,432,916	22.50
Exercised	(89,974)	13.06
Forfeited	(240,747)	16.20
Outstanding at end of period	4,240,695	$	18.33