I am new to search funds and am in the U.S. I have a simple question: if I find investors who want a, say, 20% annual return, would they expect to get their 20% paid out yearly or would it accrue and be paid out when I sell the company?

If I did distribute the agreed-upon return yearly, could I have a clause that would give me the right to buy back at any time their shares for the price they paid? So, for example, Bob invests $200,000. Year 1, he gets his 20% return = $40,000. Year 2, same thing. At the start of Year 3, could I buy him out for $200,000 provided there was a clause to gave me that right? The reason I ask is that I may want to keep the business for the long term whereas investors want an exit strategy. Or I may decide that I am tired of paying the 20% every year.