Send a text

My M&A advisory firm, 5DCP, helps buyers model cash flow before and after acquisition so deals don’t fall apart post close https://5dcapitalpartners.com/

If you want to work directly with me and my team to get acquisitions done, visit https://app.iclosed.io/e/Zak5D/5d-private-strategy-session

Join our Skool community https://www.skool.com/5d-program-6807

In this video, I sit down with 8 figure consultant Usman Kayani and break down how to structure consulting for equity deals properly, using real world examples to shift the mindset of consultants who want to move beyond fees and start building long-term ownership.

Most consultants trade time for money. The smartest ones trade expertise for equity, but only if the deal is structured correctly. Get it wrong, and you end up underpaid, overworked, or legally exposed. Get it right, and you create asymmetric upside without taking unnecessary risk.

Timestamps:

0:00 - Introduction
0:50 - Current Retainer Model & Value Creation
3:42 - Client Types & Service Offerings
5:11 - The Churn Problem at 12 Months
11:12 - The 3-Month vs 12-Month Offer
12:34 - Small Business Equity Structure
14:40 - Setting Up Equity Triggers & KPIs
17:41 - Target EBITDA & Valuation Multiples
21:00 - Amplifying Returns with Hurdle Rates
24:02 - Understanding the 50/50 Hurdle Split
27:22 - Legal Framework & Value Creation Budget
28:34 - Founder Selection & Risk Management
31:00 - Founder Buyout Mechanism
32:10 - Implementation

Listen on: Apple Podcasts Spotify

Work with me: https://go.deeludlow.com/vsl