Don’t have the capital… but want to own 22% of the business 12 months later?

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June 07, 2025

by a professional from Florida Atlantic University in Destin, FL, USA

I get the privilege of coaching a lot of aspiring business buyers. I've got a student that didn’t have the capital… but he owned 22% of the business 12 months later. He came to me frustrated. The guy was a smart operator. He had a consulting background. Knew how to scale businesses, but just didn’t have capital to acquire one of his own. Tried traditional ETA ("Entrepreneurship Through Acquisition") channels. Almost closed a small deal, but lost financing at the last minute (as many do...). He was to the point where he was feeling burned out, discouraged, and sidelined. Until we reframed the question... “What if you could earn your way into the deal instead of raising your way in?” That was the unlock: Consulting for Equity. And you may see a lot of other coaches pivoting their clients that way as well... Basically, instead of hunting for financing, he found a $5M HVAC business with a tired owner and an operational mess. Instead of coming in as a buyer, he came in as a coach. Built trust (can't skip this step), fixed a few key levers (proof of ability), and drove 37% net margin growth in 9 months (not bad). The smart move.... we helped him negotiate equity into his contract. 12 months later? He’s a 22% equity holder, full seat at the table, on a glide path to majority buyout. Having the right tools like ACQYR.me makes all the difference....
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Reply by a searcher
from New York University in San Diego, CA, USA
I’m glad it worked out, but I’d be very wary of this approach. Not because consulting for equity doesn’t work (it clearly does), but because you’re client didn’t have the capital to acquire a business to begin with. That implies that he/she probably didn’t have the credit either. Operating a business is capital intensive and if you don’t have the money to buy, you probably don’t have the money to operate- especially when the business falls on hard times. Which it always will. Raise/save the money required, build the credit you need for working capital, and then the while acquisition world opens up to you.
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Reply by a searcher
from St. Cloud State University in Sheridan, WY 82801, USA
Respectfully, I think this mindset puts people on the wrong side of the table. If you’re going to spend 9 months fixing someone else’s business, dealing with staff you don’t control, and creating real value, why not use that same time to raise capital, buy it, and own the upside directly?
There’s more dry powder out there than ever. If you can prove results, capital will chase you. Giving up majority equity just to get a seat at the table feels like solving the wrong problem.
If the operator’s talented enough to drive 37% margin growth, they’re talented enough to build trust with lenders, investors, and sellers.
The real move is to build the story, close a deal, and lead it. That’s what we’re seeing across real acquisitions right now.
Consulting for equity sounds clean, but in most cases, it’s a way to get stuck inside someone else’s dream. The better play is to build your own.
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