Question for searchers about trading equity
I just finished an episode of a podcast (not named but not hard to figure out) where they discussed a structure in which searchers are trading up to 20% equity in exchange for deal flow, transaction support, and transition assistance. I hadn’t previously valued those services that highly and think it's a bit much. Anyone else have thoughts about this?
If there’s truly a market clearing at that level, it’s something I should probably be thinking more seriously about providing. How do you think about valuing services in exchange for equity in situations like this?”