Modified Profit Sharing & Recapitalization

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March 14, 2023

by a searcher from University of Notre Dame in Houston, TX, USA

Maybe this is a question for banks or other debt providers:
If I heavily incentivize a management team with 25% of post debt-service cash flows, will this be added back for the purposes of debt capacity (and recapitalizing the business) down the road after we have grown the business?

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