[Disclaimer: a bit off topic, but equity compensation feels like /r/startups material -- my apologies if this isn't appropriate for this sub.]
A small business founder I trust is starting another business. He wants me attached as a consultant. We haven't negotiated a rate yet, but he broached the idea of paying me partially or wholly in equity.
I expect this business will be profitable but not rapidly scalable. There will be no IPO and acquisition is not a high priority. It's more capital-intensive than most startups, so high dividends are unlikely for the first few years. All in all, my estimated book value of the offer he made me is an encouraging number, but it's uncertain how that'll translate into cash flows.
Is this sort of equity total trash? Or should I go forward but make sure to hammer out a solid agreement re: dividends and exit plans? Is this a question for an accountant or a lawyer instead of Reddit?
Thanks for any advice you can give!
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March 31, 2017 at 02:35PM
http://ift.tt/2nBbRGn
from /u/cruciger
http://ift.tt/2nBbRGn
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