Our firm has placed 100+ GMs at PE-backed businesses in the lower middle marker in the last 2 years. The question I get a lot: How much does a GM at a small business cost? I'll break it down by business size and scope of responsibility. Recent examples at the bottom. --- Level 1 GM: This is someone who mainly just keeps the trains running on time. They own the day-to-day, hire/fire ICs and shift managers, and make sure everyone on the team is at the right place at the right time doing the right thing. But they aren't making investment decisions, probably cannot access any accounts, and are not purchasing anything other than what is historically necessary to run the business and is below a certain cost threshold. For a business in the $redactedM revenue range, the term GM is often used interchangeably with COO, Director of Operations, or even Chief of Staff. For the team, the GM runs a lot, but the CEO/President/Owner is still "the boss." <$5 M revenue: $70 - 100k $5-10 M revenue: $90 - 120k $10 M+: Probably not calling this person a GM No equity. Possibly some profit sharing/bonus potential worth 5-15% of their base. --- Level 2 GM: This is usually what I will see for a business with a single owner (or a majority owner with some minority partners). The owner wants someone who can more or less run the business, but the owner is likely still involved. The owner may have other businesses they want to manage, or they are earning enough that they feel comfortable stepping away from the business for days or weeks at a time. This is the first level where I usually see true P&L ownership with bonuses tied to that. Level 2 GMs have all the responsibilities of Level 3 GMs, but with a greater scope. They are hiring/firing Managers and Directors. They are hands-on with the sales team and are active in sales and business development. Could be their first experience with P&L ownership. Unlikely they are involved in any M&A. For most of the team, the GM is "the boss" and then there is an "owner". <$5 M revenue: $120 - 140k $5-10 M revenue: $140 - 170k $10 M+: $150 - $220k Equity is likely on the table, whether real or through phantom stock, in the 3-10% range. Performance bonus/profit sharing in the 15-30% range. --- Level 3 GM: This is where someone is really running the business, and at $10 M+, President or CEO is a more appropriate title. Usually reserved for PE-backed companies. They are The Boss. They hire/fire everyone on the team. They make major purchase decisions and have access to accounts. They are involved in M&A depending on their skill set. Maybe they are better on the integration side, but they may also be running origination. They work closely with the controller or head of finance and are reportable to the financial performance of the business. Unlikely this is their first P&L ownership experience, unless it is a major PE platform that feels comfortable choosing attributes over experience. <$5 M revenue: $140 - 170k (less frequent at this size) $5-10 M revenue: $150 - 190k $10 M+: $170 - $250k Equity is a must to secure a Level 3 GM. Typically 3-10%. Profit sharing/bonus in the 20-50% range. --- Here are some recent examples: Level 3 GM: $210k base, MCOL city, $15 M construction services business in a $100M rollup - 50% bonus - Very aggressive equity 7-figure equity package - Previous P&L owner at a major PE-backed business Level 2 GM: $160k base, MCOL city, owned P&L for a commercial cleaning product distributor's location - 15% bonus Level 1 GM: $110k base, MCOL city, P&L owner for a greenfield location - 50% bonus - Path to equity --- There is always nuance here. - Geography and cost of living - Risk tolerance of the ownershop group - Level of experience of the GM