Structuring equity grant for GM in acquisition

searcher profile

November 09, 2025

by a searcher in Meridian, ID, USA

Hello - I'm negotiating a small acquisition. There's a great GM in place and since I don't have direct industry experience AND the business isn't near me, my lenders really want to see the GM on the cap table. Would love to connect with folks who have structured this for an acquisition. If anyone has feedback related to %, buy-in, earn-in, gotchas, etc. I'm all ears. Thanks!
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commentor profile
Reply by an investor
from Harvard University in Santa Fe, NM, USA
Give the GM profits interest units in the LLC holdco. Make them vest over five years tied to continuing in the role.
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