Partner with business owner?

August 11, 2025

by a searcher from University of Central Oklahoma in Tulsa, OK, USA

I have an opportunity to buy into a company that has a small presence in my local town. They would want me to run their local branch ($2M in revenue), and then help expand the parent organization ($10-15M). I’m meeting with them to go over the business and discuss financial structure. We high leveled discussion about sweat equity and a salary, but no numbers discussed. What questions would you be asking? I plan to evaluate it like I’m buying it, but this is a bit different.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Interesting opportunity. If your ultimate goal is to own a business, you want to be sure you set yourself up to be in a position to eventually buy the business. If you are avoiding putting capital into the acquisition, then you might have to go the sweat equity route. But I would caution taking a position on without guaranteed equity and without a salary, of you could be wasting time helping someone else build a business and never get any value out of it for yourself. You also want to be sure it is a business you would ultimately want to acquire. If you plan to set a future price or multiple to buy the business at, keep in mind any growth you help build for them you will ultimately be paying them for in the future. If you need any assistance or have additional questions you can reach me here or directly at redacted

Reply by a searcher
in Barcelona, España

Dear Sean. Congrats on the opportunity. My first suggestion is to ALWAYS look at acquisitions as if you would be acquiring all the business. (Which I assume that it's not te actual case in here). Each country has it's owns limitations and things to take care of. But; in such environments I tend to try to strongly manage expectations; responsabilities/duties and rights. Also; I assume that the equity is tide to some executions and objectives. But make sure how or when you'll be able to capitalize your part of the equity. Although having this overall opinion, it is not the same if the equity offered is a 5% or a 30%. I'll remain at your disposal if you want to discuss ;) Go for it!

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