SELLERS' ROLE AND COMMISSION STRUCTURE FOR TECH SERVICE BIZ

Hello friends,

We are in discussion with the sellers about an IT service business. They have key employees (2) staying on board, but the 2 owners themselves are also active in the business. One taking care of the technical aspects and another helping on tech sales.

They have agreed to stay onboard post-acquisition and we would like to for 3-6 months at least to max 12 mos for a smooth transition.: (there are no direct personal ties with the existing customers but more for technical operations and to understand sale process.

Questions:

1. What would be a suggested structure to compensate past owners? If they help bring in new sales, should we just give a % of the contract value? If yes, what is the % range in general for IT sales?

2; Should we have a salary + commission structure or just commission?


Thank you in advance,

- RJ



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