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OK, I'll be the contrarian here but although their pricing/compensation structure is off for a small entrepreneur, I don't see anything morally wrong with the
by DevX101 16y ago
OK, I'll be the contrarian here but although their pricing/compensation structure is off for a small entrepreneur, I don't see anything morally wrong with the concept of this type of business.
There are many business owners who want to sell for a variety of reasons -- divorce, need a large amount of cash, tired of running the business, etc...
Almost every entrepreneur has a "price" at which he'd be willing to sell. If this consulting business changed around their pricing scheme and took a percent cut of a successful sale, where everything was transparent, there are many people who would find value in this.
For a smalltime entrepreneur, of course it doesn't make sense to drop $30k on the HOPE that these guys find a buyer. However, if your company is making $1M in profit per year, it may well be worth MORE than $30k upfront to hire well-connected brokers to get multiple parties to bid up a purchase price for your company.