Structuring equity grant for GM in acquisition

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by a searcher
in Meridian, ID, USA

7mos ago

Structuring equity grant for GM in acquisition

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!redacted

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reply by an investor 7mos ago
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.