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I would dive in deeper as to why MP wants to give away equity so easily especially if he has made millions. If he really believes the business can sell for 9 fi
by mattm 12y ago
I would dive in deeper as to why MP wants to give away equity so easily especially if he has made millions. If he really believes the business can sell for 9 figures in a few years the extra 100k that he would pay you would be a steal. Maybe he is not as confident as he says he is.
Also, if you are considering this treat it like an investment. You are essentially investing $100k into the business. You have a right to know the full details. Ask for the distribution numbers and ask hard questions about his motivation and get references. Look into what he says to see if he's reliable. How well does your friend know him?
Have the 7 partners worked together before? Team dynamics are hugely important.
You will be partners for the next few years. Treat it as if you were getting married. Don't let yourself be rushed into making a decision.
- disposable_me 12y agoThanks for your reply. I would dive in deeper as to why MP wants to give away equity so easily especially if he has made millions. How would you go about this? If he really believes the business can sell for 9 figures in a few years the extra 100k that he would pay you would be a steal. I actually said this during our meeting yesterday (which lasted 5 hours with no conclusion). His response was that he simply did not want to pay my full rate and wasn't considering that as an option. It was a very weird moment. How well does your friend know him? Have the 7 partners worked together before? Team dynamics are hugely important. MP is my friend's client, so friend knows MP well as a businessman whom friend's company services. Friend & 2 partners are all partners in friend's company, so they work together and have good dynamics. MP and other 3 partners have all worked on businesses together for last couple of decades.