Completion Bonus Payment for Self-Funded Searcher?

searcher profile

May 01, 2025

by a searcher from KEDGE Business School in London, UK

I've been in my self-funded search for almost 2 years now. I'm close to closing a deal, but you never know... Given that it has taken longer than I would have wished (read: a couple broken deals along the way) I'm wondering if it's acceptable to investors to ask for a one-off "bonus" payment on completion, to make up for some of the capital gone into the search? It really feels like I'd deserve a little something, if/when I manage to close this deal. Any thoughts?
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commentor profile
Reply by an investor
from Western Washington University in Key West, FL 33040, USA
It is not common in the self-funded searcher world. Your "bonus" is the fact that you get to retain the majority of the common equity while putting up very little equity. Even in independent sponsor land, deal fees are almost always 100% rolled into the deal.
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Reply by an investor
from Columbia University in Larchmont, NY, USA
Philosophically, I agree with Ben. The idea that you would be paid up-front for the leg work doesn't feel right. Maybe if made it a minor payment and subject to pref returns, investors would go along with it....but it should be performance-linked.
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