Advice on incentives for searchers targeting holding rather than exiting

by a searcher from University of Melbourne

4 months ago

Hi, im exploring working with a fund through the serach and acquisition phase. They are looking to hold companies long term (as opposed to exit). 

Given there will be no exit, how do people recommend structuring the searchers comp? Happy to take equity but also would be looking for other performance bonuses tied to outcomes e.g. Revenue Growth, Cost Out etc. 

Are there any benchmarks, resources or general advice people could provide here? For context, the businesses would be 2-10m in Revenue. Thanks

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4 comments

searcher from Georgetown University

I went through this last year with some investors. Feel free to shoot me a DM

4 months ago | like reply | 0 likes

searcher from Liberty University

I guess I am a little confused with the ask. It says you are looking to help a company through search and acquisition and then performance based outcomes during operations. I would start by getting clear on what it is that you are doing for the company? Is it operations, is it just searching, etc. If you are helping search, acquire and operate then I would certainly want equity if not then it could just be transactional type rewards (commissions, etc.)

4 months ago | like reply | 0 likes

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