To Friendly "Squeeze" a Main Supplier but giving RevShare + Equity
Has anyone ever done a deal where you've vested a minority interest (like 5%) to a major supplier in exchange for better pricing, some exclusivity and other favorable terms?
Anyone know of Common Pitfalls to a Supplier owning some equity? (Non voting)
I'm in the middle of a deal right now and the main supplier likes the direction we are going in and our team.
The Supplier wants $1M upfront
We are counter-offering low six figure BUT with revshare + minority equity
I want to align everyone's interest and obviously minimize cash outlay.
I structure it so the supplier will make more money in the long run with this arrangement Win-Win
Thanks in advance