Buy and hold investor payment terms?

A percent of revenue share across a period of time with a holiday as you ramp up. Most cases, you can refinance to buy out investors or negotiate buy out options over some timed intervals. The simple math is to base your calculations based her total versus per business unit therefore you minimize your downside and of course your upside. You wouldn’t want to me in a situation where you are paying off an investor with a bolt on that is losing money. Bottom line, you have plenty of options and numerous ways to structure the deal.

A simple approach woud be to pay investors a pre-agreed % of revenue, maybe with an initial holiday and up until either a ceiling return is achieved or a time limit or which ever comes first. The principle is you want to have investors share in risk and upside without the ability to cause foreclosure. The challenge may be differentiating bolt on revenue. Or use your total revenue.