I’ll be selling in 4-5 years. My GM and lead estimator just asked for a small piece of equity, good idea?

JT says: An owner’s mindset is the hardest thing to replicate in business. With equity (real or phantom), key employees work harder, are more accountable and make better decisions- all contributors to a better work-life balance for you. In this tight labor market better talent can also be retained/attracted. There may be a slight loss of privacy as they get to peak at financials, and you’ll give up a few ‘fruits’ at the end. Whether they earn-in or buy-in over the 4-5 yrs., the benefits can still be appealing. As an FYI, there are a few industry buyers who encourage owners/key employees to roll-over equity for the same reasons mentioned above.

JT Kraai has brokered hundreds of deals in the restoration industry, and is here to answer YOUR questions! Email your question 100% confidentially to: jt@exitstrategies360.com. Your question may be used, but name will remain entirely confidential.

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