Fractional Corp Dev
Was thinking about forming a firm of PE-burnouts who would do fractional corp dev for the bajillion "buy-and-build" platforms out there. In the LMM, it's often hard to validate hiring a FT Corp Dev person until you hit ~$20M EBITDA, but think there's demand for deal-by-deal fractional help below that threshold (needed to achieve critical mass). Pricing would be structured such that a VP level person could clear ~$1M cash comp p.a. if they worked 50 hours per week all year. I would take 20% off the top. Maybe that equates to 10 add-ons closed per year at $120K a pop ($100K to resource, $20K to agency).
Ancillary services would be FP&A and board deck help.
Would anyone do this job?
Conversely, would anyone buy this service?
That's a great idea, we could use this. Ill PM you.
Current VP in LMM and interested to learn more / potentially interested. Think VP of Corp Dev roles for PE-backed roll-ups can pay ~$300-400k cash comp (primarily base with smaller portion as bonus) plus equity valued at ~$1-2 million (quoted at 3.0x return for sponsor) from what I've heard.
For what you're thinking, the $1 million cash comp would be contingent on closing 10 add-ons? So if you don't close a deal, you don't get paid? Seems risky and bit unfair, especially if you work hard to run at a deal and it falls apart at last minute for reasons of out your control. Also, wouldn't this incentivize the person to close deals no matter what (i.e. might actually not be a good deal / you uncover something bad during diligence).
Interested! I was thinking of doing/starting something similar but as a consultant first. Would be open to discussing
This already exists but always room for more. I forget the name of the firm but there’s a group out of Atlanta or Nashville that places hourly consultants with PE experience to help with M&A and other corporate finance work.
Very interested in this idea as well, if anyone knows the name of the firm, please post.
Bump
I know someone who does this. They are killing it. Might look to do it myself
Open to connecting? Thinking of dong the same. 2 years IB + ~5 years PE generalist/roll-up experience
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