Question for searchers about trading equity

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February 15, 2026

by a searcher from University of Virginia-Darden - Darden School of Business in Bethesda, MD, USA

I just finished an episode of a podcast (not named but not hard to figure out) where they discussed a structure in which searchers are trading up to 20% equity in exchange for deal flow, transaction support, and transition assistance. I hadn’t previously valued those services that highly and think it's a bit much. Anyone else have thoughts about this? If there’s truly a market clearing at that level, it’s something I should probably be thinking more seriously about providing. How do you think about valuing services in exchange for equity in situations like this?”
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Reply by a searcher
from University of Florida in Orlando, FL, USA
It's an interesting model. Makes me want to attempt it. 20% is definitely expensive. I believe 10% is more reasonable, especially if they are able to raise the equity capital needed.
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Reply by an intermediary
in Austin, TX, USA
Doesn't pass a logic test. I help you with maybe###-###-#### ,000 hours of work and get 20% of a company. Sounds very unreasonable to me.
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