Don’t have the capital… but want to own 22% of the business 12 months later?

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June 07, 2025

by a professional from Florida Atlantic University in Destin, FL, USA

I get the privilege of coaching a lot of aspiring business buyers. I've got a student that didn’t have the capital… but he owned 22% of the business 12 months later. He came to me frustrated. The guy was a smart operator. He had a consulting background. Knew how to scale businesses, but just didn’t have capital to acquire one of his own. Tried traditional ETA ("Entrepreneurship Through Acquisition") channels. Almost closed a small deal, but lost financing at the last minute (as many do...). He was to the point where he was feeling burned out, discouraged, and sidelined. Until we reframed the question... “What if you could earn your way into the deal instead of raising your way in?” That was the unlock: Consulting for Equity. And you may see a lot of other coaches pivoting their clients that way as well... Basically, instead of hunting for financing, he found a $5M HVAC business with a tired owner and an operational mess. Instead of coming in as a buyer, he came in as a coach. Built trust (can't skip this step), fixed a few key levers (proof of ability), and drove 37% net margin growth in 9 months (not bad). The smart move.... we helped him negotiate equity into his contract. 12 months later? He’s a 22% equity holder, full seat at the table, on a glide path to majority buyout. Having the right tools like ACQYR.me makes all the difference....
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Reply by a searcher
from New York University in San Diego, CA, USA
I’m glad it worked out, but I’d be very wary of this approach. Not because consulting for equity doesn’t work (it clearly does), but because you’re client didn’t have the capital to acquire a business to begin with. That implies that he/she probably didn’t have the credit either. Operating a business is capital intensive and if you don’t have the money to buy, you probably don’t have the money to operate- especially when the business falls on hard times. Which it always will. Raise/save the money required, build the credit you need for working capital, and then the while acquisition world opens up to you.
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Reply by a professional
from Florida Atlantic University in Destin, FL, USA
In principle, I totally agree. And, in the past I've given this same advice to many before... However, you make it sound really easy to get acquisition capital as a new searcher. If that were the case, why are many searchers 2+ years in not getting access to this abundant dry powder for deals that DSCR in the 3s and 4s? I can tell you many qualified leaders are getting blocked out for other reasons. CFE is an alternative strategy. A tool in the belt for certain instances. Not a hammer that you whack like everything is a nail. But for some, its a way into the game, and they earn their way to the next level. Be a gent and help people achieve more. Don't be a naysayer with only 1 path to victory and everyone is wrong for not seeing it. And for the record... I've seen just as many people buy outright a business that was misrepresented during Due Diligence or heavily owner dependent, only to find out after closing. Now, they own the whole stinking mess, instead of dating before marrying. Plus / minus to everything.
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