I am looking to acquire a partnership stake in a small business. The seller and I have signed an LOI and I am conducting ongoing due diligence. The seller wants to continue on as majority partner, with the option to reduce his stake and increase mine over time.

For context, I am self-funded, am roughly following the 2016 GSB Search Fund Primer, and am in business school. This is my first time putting a deal together.

I'm looking for advice on how to structure this agreement and would appreciate advice from someone who has completed a small business transaction like this before. Thank you all!