What is the typical compensation for searchers when they handover a deal that they still had in their pipeline after successfully acquiring another company? We are currently in this situation. The deal to be handed over is for a software company with an EV around $20M. At the time of handover, interactions with the company had been taking place for nearly a year, commercial due diligence had started and an on-site visit had taken place. Paid due diligence is yet to be done and will need to be financed by the new fund. The initial proposal is: • $150k cash on close • 3% equity on close • 2% equity based on performance hurdles Is this a typical compensation, and are there other examples out there that we can base our discussions on? Thanks in advance for your advice!
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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