Last year, we had an LOI to acquire the majority of a company with $9.4M in EBITDA, $60M in revenue, and an $80M enterprise value. In the end, two of the three company founders decided not to move forward with the deal. Now, about 10 months later, the remaining founder reached out and is looking to sell his shares at a discount.

The company operates in the same industry as my previous business, which I exited from. It has a 15-year history of steady growth, with two of the founders actively running it and wishing to continue doing so.

Does anyone have experience with secondaries from an independent sponsor standpoint? I am familiar with the independent sponsor compensation model in traditional control buyouts (2.5% of EV up front, 5% of ongoing Ebitda, and 20% carry), but how is an independent sponsor compensated in secondary transactions. Any insights into what a typical compensation structure looks like for this type of deal?