u/Apart_Designer6574

Is this CEO comp market?

I am partnering with a private equity firm on an MBO, buying a company from the retiring owner/CEO for $200m (current EBITDA =$20m), then will be running it as CEO.

How Are these terms - should I offer/expect higher or lower?

\-Double Lehman Finder’s Fee ($4.28m at $200m transaction)

\-5% equity (tiered over 6 years, 2% upfront plus 0.5%/yr)

\-keep market current base (I’m President currently, report to owner/CEO only)

\-Bonus of 2.5% of EBITDA above $15m/yr, and 5% of EBITDA above $20m/yr. So if EBITDA = $23m, bonus = $125k + $150k = $275k. Bonus paid quarterly an option (vs annually)?

Dude has a 7 year run averaging less than 5 FGA per 36 min….one season had almost as many stocks (steals + blocks) as field goals: 1.9 vs 1.7…his last 3 years as a starter he averaged 5.3ppg and 2spg…and on the highest scoring team (at the time) that was averaging 115ppg, the 80s Nuggets

Basically same per-36 ppg and FGA as Rodman, but as Shooting Guard

3 all-defensive 2nd Teams

#7 in DPOY twice, #8 once