Deal Success Based Compensation Terms
I am in the position of finding deals for a PE firm. The agreement is that I will get a piece of the equity upon consummation. We're looking at middle market companies ($500M to $3B in EV). My role will be to be a board member and/or run the company once acquired. I am an expert in the vertical.
Q1: What should be the percent of deal upside (i.e. percent of value above acquisition cost) that someone gets for helping source + operate and/or oversee (i.e. chairing the board)?
Q2: What other compensation should I be asking for (i.e. retainer, success fee...)?
Sorry don't really have anything to add, but curious. You're an "expert" in the vertical, and you're a 2nd year analyst (based on a previous post)? And given the responsibility to run a business with an EV of $3bn?
Sorry dude, but how do you go from "1st year analyst struggling with Argus" to an expert evaluating an opportunity to run $1bn enterprise value companies in a year? My bull shit detector is running red hot right now. Are you on DMT?
You’re right, I’m not at that level but I'm asking for my uncle - he is a veteran consultant but has no PE experience and hence nobody to ask this to. Thought I could get some solid responses from those that are more experienced on here...
Yeah I have unquestionably far too little experience to add any value here past making a snarky comment, but I wish your uncle luck
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