GIVING EQUITY AND CASH FLOW

Greetings all -

I've got what is probably an extremely basic question that I've avoided asking because it seems like one of those things that "everybody knows" - and yet it's never spelled out directly anywhere. As such, I'm just going to bite the bullet and admit my own ignorance by asking:

When you make a purchase and give equity as part of that purchase (either to the seller, to an investment group, to an advisory board, etc)... Will those equity holders receive payouts on some ongoing basis (as part of your net profits), or does that group not receive a return on that equity until you sell the company?

Thanks,
Jon



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