Ad Hoc Analyst Work

All, I am doing some analyst work for an existing client of my firm on a stand alone basis. Its a redevelopment project and I have done all of the modeling for the equity raise. My firm is involved, however not in the capacity of raising equity. The client has expressed that he will compensate me in some fashion (analyst recently left, so they needed me to fill the void while they hire a new one).

Any one have experience doing analyst work on a "one off" basis like this? How did you charge for it? I have not spent so much time on it my eyes are bleeding or anything, but we have had a few calls and a number of revisions have been produced so I have spent a material amount of time on it.

A piece of the promote would be nice...but I feel like that may be a little aggressive to ask for.

As an aside, my boss is throwing me a bone and not considering it to be "company time" or anything so Im not worried about that.

Region: 
France

Comments (9)

May 3, 2016

Though your boss is not worried, I would seriously contemplate and/or reconsider your strategy. Things like this have a tendency to blow up in a bad way, especially since you are working on your company's time/dime, for a client of your company, without your company being compensated. Your boss may be "throwing you a bone", but that bone may be poisonous.

If your company is involved in another component of this project, and you are "consulting" on the equity, and things go wrong, there is a high likelihood that you and your company have some liability. Something to consider.

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May 3, 2016

Um - you modeled a redevelopment project for a client and want promote for that? What is this world coming to. If you place the equity, take a placement fee and ask if you can roll it into the deal (still a long shot unless it's a small outfit).

Honestly, do the work for the client and don't ask for anything other than to compensate your firm (are you serious?) or to keep you in mind when an opportunity that fits into your P&L arises. This is how you build your career. Do not ask for promote for building models - I would laugh at you if you were consulting on one of our deals.

Just my .02. Good luck

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May 3, 2016

Perhaps my sarcasm regarding the promote was not apparent enough.... I wouldn't ask for a piece of a million+ dollar promote (or of any size for that matter). I'm not a blundering fool.

The client brought up compensation immediately upon asking me to help them out (I did not and would not have ever asked for it). They are almost insistent that some form of compensation be provided. Obviously, I immediately offered my boss/firm whatever I received...it was declined.

A placement fee doesn't seem appropriate given the equity sources are not mine and I am hesitant to just throw out an arbitrary number that doesn't seem "thought out". I was considering something like an hourly rate and (likely very) conservatively estimating how much time I have spent on it....thoughts? This is uncharted territory for me so I am simply curious if anyone has run across a similar situation.

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May 3, 2016

it definitely did not sound like sarcasm lol

May 3, 2016

I think its a tough spot that has a multiple scenarios where the arrangement can go south. If the work isn't too taxing I would just push off the compensation discussion unless really pressed and just use it as a way to curry favor with the client.

May 4, 2016

Just bill them an hourly rate. $100/hour would be reasonable. No one will object to that, and if the deal blows up you can just say. I just did the excel work at X rate, you weren't providing any consulting service or advice. Just doing the grunt work.

Follow the shit your fellow monkeys say @shitWSOsays

Life is hard, it's even harder when you're stupid - John Wayne

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May 4, 2016
heister:

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p>Just bill them an hourly rate. $100/hour would be reasonable.

This.

May 4, 2016

Agree w/ above. So that you have a second data point, I have a buddy who used to work at a consultant in a secondary market doing CRE development modeling for clients and his work was billed out at $85/hour.

May 4, 2016
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