Are you successfully negotiating VC-style economics for your deals?

by a searcher

2 years ago

Moore & Van Allen PLLC has a great piece outlining the side-by-side comparisons on economics between Independent sponsors and searchers.  In it, they discuss how some Independent Sponsors successfully negotiate for venture capital style economics tied to a pre-money valuation of the target versus more "standard" PE-style waterfall economics tied to performance hurdles and carried interest.  Anyone out there familiar with this approach and willing to chat by phone for a few minutes?

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searcher

enjoying this thread - Many Thanks

2 years ago | like reply | 0 likes

searcher

I once looked at an investment proposal taking this VC/pre-money approach to a buy-and-build strategy within the plumbing sector (in the UK). The pre-money valuation seemed reasonable given the apparent deals with already agreed terms (and before accounting for the ambitious acquisition plan). However, I wanted to see the agreed deals before committing any capital and this is where it fell apart...

2 years ago | like reply | 0 likes

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