Advice on incentives for searchers targeting holding rather than exiting

March 15, 2024
by a searcher from University of Melbourne in Melbourne VIC, Australia
Hi, im exploring working with a fund through the serach and acquisition phase. They are looking to hold companies long term (as opposed to exit).
Given there will be no exit, how do people recommend structuring the searchers comp? Happy to take equity but also would be looking for other performance bonuses tied to outcomes e.g. Revenue Growth, Cost Out etc.
Are there any benchmarks, resources or general advice people could provide here? For context, the businesses would be 2-10m in Revenue. Thanks
from Liberty University in Rochester, NY, USA
from Universidad Internacional del Ecuador in Cuenca, Ecuador