Employment Agreement with stock options only

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Harvard University
in Toronto, ON, Canada

1yr ago

Employment Agreement with stock options only

Anyone worked with employment agreement with only stock options and no base pay?
Throw some information about do' and don'ts most appreciated

Negotiating a GA deal with such for an extended family member of seller, who worked as a vendor but holds lot of relationships. Want to get him on vested stock option with no other base pay until exit.

TIA

0 Likes

28 Views

reply by a searcher 1yr ago
from Grantham University in San Antonio, TX, USA

This is different. Please keep us posted as to how this works out.

reply by a professional 1yr ago
from University of Virginia in Holmes, NY 12531, USA

Definitely not uncommon in the early stage venture space - both in cases in which the employee is granted x% of the outstanding shares as of the effective date., and in others in which the grant is assigned a cash value (within these, some stay all equity, in others, the employee may have the opportunity to replace or supplement the equity consideration with cash consideration if the business hits certain thresholds). I'd be happy to discuss in detail if helpful, shoot me a note at redacted anytime. Among so very definite dos: (a) don't forget about relevant securities laws; (b) to the extent feasible, prob want to structure to offer the employee the best potential tax treatment if the equity pops; (c) ensure genuine mutual understanding re: vesting schedule (whether time-based, milestone-based, or a combo); (d) ensure genuine mutual understanding re: any dilution protection, or pro rata participation rights; (e) make sure you're not inadvertently overcomplicating your cap table; (f) crystal clear on whether the shares, by their nature, are preferred/common or performance-based/incentive. All the best, Matt