Angebote gegen Firmenanteile strukturieren

0:00What do you know about making offers in exchange for equity that you wish you knew on your first deal? Like how has that shifted for you over time? >> So for you guys, I think the role it makes sense because you have a really clear vertical that you can go after and there's a ton of M&A activity there. And so you're doing a lot of the heavy lifting that um a private equity integrator would be doing already because you're unifying their price points, you're unifying their messaging, you're unifying their CRM on the back end. Like you're doing all the work that someone who would integrate all those, you know, businesses together would do anyways. And so you're just doing it on the front end and they're paying you for it which is amazing, right? And so um from the offer perspective, the offers that I would be making would be different than the types of offers that you'd be making because I if I were making some sort of consulting for equity thing, which we don't do anymore.

0:41Um I and I'll tell you why I don't do them. Um and then I'll bladder into your thing. Um I don't do consulting for equity because it's not worth it. the amount that someone's willing to give versus the amount of work that is expected um is not worth it for me. And so I'd rather just write a check and be like good luck um and then pick well and then if I choose to um you know like promote something or help with brand then that's just going to be negotiated separately.

1:11I just don't like the the handshake of unex like of of unclear expectations around generic help. I also don't like hey you I now belong to you for x hours per week. Um because that feels like the antithesis of freedom and that is not why I got into this. Um so that is why I'm not a big fan of the consulting for equity model unless it's a clear advisor relationship where you say we meet once a quarter whatever and there's other adviserss and you know there's roles for that. It's not my preferred way of doing business but some people do it. Um for you guys though um the offer to me is just a clear arbitrage offer. So it's to me it's a very and for your avatar I think they would like it which is just like on your own you will sell at 4x with me you will sell at nine I will give you seven of those nine and I will take two that's the deal and I think most people would say I would rather get seven than four and if someone says I don't want you to get two and I'm not willing to get three in order to spite you for getting two then I would say you're not the right fit for a rollup

2:14>> uh how >> because you have to have team players because somebody can mess the deal up. So, you have to have complete decision-m authority that has to get rolled into it. This is taglong rights that you have to negotiate up front. >> Yeah. >> And you negotiate that by saying, "Listen, you don't want anyone else here to screw up your exit." And that's why no one can do it. And as long as you all trust that I'm incentivized to make this deal happen, then you can give me the decision-making authority, assuming we get over this valuation or this multiple for the aggregate.

2:39>> Got it. Makes perfect sense.