Volunteering free time to a prospective seller?

professional profile

January 29, 2023

by a professional in Nashville, TN, USA

I have a client that is conducting a local search. He understands that he's unlikely to differentiate himself from an experience or capital perspective but is exceptionally smart and personable. He also has the luxury of not needing to earn income right now. His idea is to volunteer some number of days or weeks to really get to know the business owner, the business, and demonstrate how can can bring value as potential buyer.

Is anyone familiar with an approach like this? If so, was it success or do you have any guidance on how to make this short-term arrangement most success for both parties? At a high level, I found it to be a creative win-win: an unexperienced buyer gets his foot in the door, the owner gets free work/perspective, and they both get to know each other better.

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Reply by a searcher
from Columbia University in Bend, OR, USA
This is similar to how i entered my first acquisition in###-###-#### I essentially signed a consulting agreement and then changed the agreed to $ value of my time as consideration into a recapitalization. It gives the seller a risk free way of working together and the buyer deeper level knowledge of the business. I'd limit it to 120 days and expect it's over in 180 days happy to discuss
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Reply by a searcher
from Wake Forest University in Greensboro, NC, USA
A fantastic idea, I think. Drastically lowers risk and can help you make the most informed decision possible. But, would want to ensure you can enter AND leave on good terms with seller.
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