Compensation for helping someone in their search process

by a professional from Georgetown University

1 year ago

Folks, how do you think about compensation when you're consulting someone in their search process? Not as a broker but more as a co-searcher of sorts, helping with search, diligence, etc.? A close friend has asked to help them with their search process. They already have the capital and are looking for help with the search and acquisition process.

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investor from Columbia University - Columbia Business School

Will this be a one off deal to diligence or a recurring request? Is your expertise business DD? These acquisitions tend to be small and can't withstand high DD costs (even if the deal is completed). If it's a friend, and non-recurring, I'd consider doing it for a small cash payment (on a contingent basis).

1 year ago | like reply | 0 likes

searcher from Columbia University - Columbia Business School

I'd angle for sweat equity, using rates for local professionals in the areas as a basis. So, if attorney's make $500 an hour, I'd estimate how much that'd be worth and calculate a % of equity that would compensate me for that.

1 year ago | like reply | 2 likes

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