We are looking at a healthcare company where there is a clear rainmaker. For those who have similar deals, how have you structured the employment agreement post close?
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1. Deferred deal bonus based on performance over a [3] (or longer) period
2. Giving them some equity/options that vest on change of control
I would be most concerned if the rainmaker is also the owner of the clinic because they'll be getting a large lump sum, and may take their foot off the gas. If that's the case, I would assume a normalized production level in terms of Adj. EBITDA, and offer some kind of earnout if the owner continues to be a rainmaker during your hold period.