Comments on: Don’t Die From Buyer Fever http://www.businessbuyeradvocate.com/2009/10/don%e2%80%99t-die-from-buyer-fever/ A Blog to Help People Buy the Right Business the Right Way Thu, 22 Jul 2010 23:39:13 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Devon http://www.businessbuyeradvocate.com/2009/10/don%e2%80%99t-die-from-buyer-fever/comment-page-1/#comment-104 Devon Mon, 25 Jan 2010 17:17:13 +0000 http://www.businessbuyeradvocate.com/?p=22#comment-104 Hello there, I am working with a partner to purchase a pool hall / bar from a private seller. Profitable business for 20 years, simple operation, 3 employees, etc. My partner & I will provide the purchase cost, but our day-jobs will prevent us from managing the daily operations. We have a manager in mind who is competent to run the operations. My question is regarding sharing equity in the business -- Any thoughts on providing the manager with an equity stake in the business? Key points: - The thought is providing an equity stake will ensure honesty and a determination to increase profits. - Manager may receive $$ in bonus based on profitability until the 2 partners have recouped their investment, then allow manager to earn a share. OR, provide Manager a 5% stake right from the start, with the option to buy into a greater stake in the future. - What about an equity stake for the Manager, but he must return the stake once he leaves employment? Just curious what others have experienced or think. Thank you, Devon Hello there,

I am working with a partner to purchase a pool hall / bar from a private seller. Profitable business for 20 years, simple operation, 3 employees, etc. My partner & I will provide the purchase cost, but our day-jobs will prevent us from managing the daily operations. We have a manager in mind who is competent to run the operations. My question is regarding sharing equity in the business — Any thoughts on providing the manager with an equity stake in the business? Key points:

– The thought is providing an equity stake will ensure honesty and a determination to increase profits.
– Manager may receive $$ in bonus based on profitability until the 2 partners have recouped their investment, then allow manager to earn a share. OR, provide Manager a 5% stake right from the start, with the option to buy into a greater stake in the future.
– What about an equity stake for the Manager, but he must return the stake once he leaves employment?

Just curious what others have experienced or think.

Thank you,
Devon

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