Advice: Consulting to Ownership

searcher profile

March 16, 2022

by a searcher from Carnegie Mellon University - Tepper School of Business in Pittsburgh, PA, USA

Curious if anyone has negotiated a consulting to partnership/ownership with the Small/medium sized business that they have been working with before.



Specifically I am curious if there are any insights on how to structure equity/ownership/compensation/roles and responsibilities.

1
2
64
Replies
2
commentor profile
Reply by a searcher
from Massachusetts Institute of Technology in New York, NY, USA
Curious to hear how this idea developed. The idea to buy a business with sweat equity is interesting but I wonder if a seller will find it compelling
commentor profile
Reply by a searcher
from Carnegie Mellon University in Pittsburgh, PA, USA
Nacim the idea developed through my own experience working with distressed businesses where there is a process and path positive cash flow and returns but the current owner is too resource constrained and not the right fit to captain the business and they value your skills and abilities to help run the company.

I have also spoken to a few searchers who have acquired or built networks this way. It provides an opportunity to build rapport with an owner while also learning at a deeper level the ins and outs of a business that would help you glean more insights than a due diligence.
Join the discussion