Seeking Feedback: Structuring Capital + Sweat Equity Buy-In for a Growing HVAC Company

I’ve been introduced to the owner of a well-established HVAC company in Louisiana. In business for nearly 8 years, the owner has 20+ years of industry experience. While many contractors in the region are struggling for work, this company has consistent projects on the books, is expanding, and has multiple investor inquiries. The owner isn’t actively looking to sell, but is open to a strategic partner who can help with: o Recruiting HVAC technicians and staff (I have a statewide network I can leverage) o Building out recurring revenue via service contracts (experience from oil & gas services) o Identifying gaps in larger competitors’ offerings o Providing strategic growth support while maintaining a family-owned culture I would not be involved in daily operations, but I’d be an active partner on strategy, business development, and team-building — and I’m even open to going through HVAC school myself for a deeper technical understanding. I’m meeting with the owner next week and want to come prepared with a reasonable buy-in structure that balances: Capital investment (to support growth into a larger space and staffing) Sweat equity (leveraging my network, contracts experience, and leadership background) For those who’ve done deals like this: 1. What’s a fair percentage of ownership for a mix of capital + sweat equity? 2. How have you structured buy-ins for strategic partners versus daily operators? 3. Any pitfalls to watch out for in service businesses where the founder is still heavily involved? Looking forward to your thoughts and experience.