"I have generally seen ~50-60% of equity being allocated as “sweat equity”" Hi do you have anything online to substantiate 50-60%? I did a basic "search fund equity split" google search and don't really see anything greater than 30%. Trying to figure out how to negotiate my split as well (former PE guy as well :))
Great post. When you say hire/fire CEO - were you not stepping in to be CEO yourself? Or you just mean that you couldn't be removed from that role by investors?
Are you seeing any movement towards 10-14% coupon on the prefs/investor loan notes? Working in PE, this is the trend I'm seeing.
Was there any hard negotiation of any vesting provisions on your common stock?
Great post, thank you! Can you share your thoughts on governance re: profit sharing? Once preferred has been paid off, does searcher typically decide whether to distribute cash available to equity holders, or reinvest it in the business?
"I have generally seen ~50-60% of equity being allocated as “sweat equity”" Hi do you have anything online to substantiate 50-60%? I did a basic "search fund equity split" google search and don't really see anything greater than 30%. Trying to figure out how to negotiate my split as well (former PE guy as well :))
Any recommendations on contracts and/or lawyers for putting together these equity / shareholder documents?
Great post. When you say hire/fire CEO - were you not stepping in to be CEO yourself? Or you just mean that you couldn't be removed from that role by investors?
Are you seeing any movement towards 10-14% coupon on the prefs/investor loan notes? Working in PE, this is the trend I'm seeing.
Was there any hard negotiation of any vesting provisions on your common stock?
Great post, thank you! Can you share your thoughts on governance re: profit sharing? Once preferred has been paid off, does searcher typically decide whether to distribute cash available to equity holders, or reinvest it in the business?
This post couldn't have come at a better time. Thanks for an excellent and informative read!