We are currently searching for a small business with at least $400k SDE in the medical or construction service industry.
Even though I will be putting down around 5% of the purchase price, I will be the operating partner and will be funding the entire due diligence process. While my partner will function as a passive investor with little oversight.
What are some best practices to negotiate a 50% stake in a search fund if I have virtually no money for a down payment compared to my partner?
I have heard about several models such as traditional 8-8-8, RSU, class, option, and stock.
Any help is appreciated, Thank you.
Negotiate search fund stake as operating partner
by a searcher from Northeastern University
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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