What baseline salary is fair to pay oneself after acquiring a business and operating it? If it depends on the size, what pay bands based on size / revenue / other factor(s) is reasonable?
On the equity side, what have you seen for self-funded v. traditional?
Thank you
Salary + equity for searchers-turned-operators of acquired businesses
by a searcher from Lakehead 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.
As for equity, lenders have the same equity requirements for the most part regardless of self-funded or traditional. The difference in equity usually has more to do with lender type them type of search. If you are doing conventional financing most of our lenders do not want to lend more than 60 to 65% max of transaction cost. For SBA lending you can get away with as little at 10% down or possibly even as little as 5% if the seller carries back 5% or more on full standby. I usually recommend having the seller carry something back no matter what, even if not on standby, to provide additional protections to you as the buyer.
I am more than happy to discuss either topic at any time. You can ping me here or directly at --@----.com Thank you and good luck.