Ep. 96 All Things Independent Sponsors, with Drew Brantley, Managing Director of Frisch Capital Partners
Investors & Operators
00:00
How to Buy Equity From a Seller
If they're when you talk to sellers about buying a portion of equity, be careful that if you tell them they're going to get a certain amount of equity. The new co is going to typically have some amount of leverage on it unless you do the deal all equity. And so that leverage that debt on top of it is going to reduce the amount the that equity pool. Most common way that most businesses are going to give management incentive to give some equity away and dilution could come in a lot of forms.
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