13 Comments
Dec 2, 2023Liked by Guesswork Investing

"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 :))

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Sep 3, 2023Liked by Guesswork Investing

Any recommendations on contracts and/or lawyers for putting together these equity / shareholder documents?

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May 11, 2023Liked by Guesswork Investing

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?

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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?

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This post couldn't have come at a better time. Thanks for an excellent and informative read!

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