Red Flag? Commissions-only acquisitions roles
I’ve been looking for a new role and have come across multiple acquisitions listings that sounded great until I noticed the comp section mentioned that the pay was commissions-only. I’m guessing that means the firms have no money and they’re looking for free labor to try to tie up and then capitalize deals? Is there any chance of being successful with that model? Has anyone done this?
I’m thinking that structure would be better than being unemployed, but it just seems too risky. Am I wrong to think it’s a red flag?
Depends what type of commission is being offered. It's certainly outside market and comes with a good dose of risk. I'd default to red flag and stay away, but if there is a quick way to figure out what the structure looks like (there probably isn't) then maybe worth peeling back the onion.
Big red flag. Why are the founders so broke that they can't pay a salary? How are they going to afford to buy anything?
Treat it like a stop-gap, resume-filler role that can keep you 'active' in the market, grow your network and get an actual job (with an actual salary) the moment opportunity presents itself.
I’m debating if doing it could be worse than sitting on the sidelines. I have a good resume, but would no name bucket shop with a short tenure make me look worse as I continue to apply places? If I did it (huge if I’m leaning against), I would just exclude or anonymize that stint from my resume long term.
Regarding resumes, I’ve heard both:
-you’re quickly judged on last role
-you’re judged harshly if unemployed
My last job was at a MF. I don’t want to dilute that, but I also don’t want to crater my chances. Unclear if I amt to stay institutional or go somewhere more entrepreneurial. Not me (or real estate), but a friend who left BlackRock told me “I could only leave BlackRock once.” I don’t want to be the guy talking about my analyst stint at a BB a decade plus ago to stoke my ego if my current employer is a no name.
this is good context that changes picture a bit. when you have MF pedigree on resume, I think you can wait it out much longer than most. Maybe best of both worlds: on resume/linkedin you can call yourself a one-man shop while also bird-dogging for that other firm? Or would they want your linkedin with them? B/c once you hitch your wagon to someone else post-MF, you're more identified with this new shop. to your point, you only leave MF once, and you're no longer guy coming from MF but guy coming from fly by night operation.
End of day, listen to everyone's opinions, sleep on it for awhile and go with your gut.
I'd just proceed with caution, not necessarily market, but might also be more to the story. A lot of the cases are probably crappy founders that need free labor, others might be some kind of small salary or draw + company support.
Of course it’s a red flag, but when has that ever stopped a desperate man?
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