United States

Business services deal making: Five critical partner compensation questions to consider

WHITE PAPER  | 

Download the white paper

Deal negotiating is a complex and sometimes contentious undertaking with many financial and operational aspects for private equity firms and strategic buyers to consider. One important consideration, especially related to potential business and professional services industry acquisitions, is the target company’s partner or owner compensation structure.

When acquiring a business services firm, buyers are essentially purchasing human capital. People are the primary assets of a business services company and as such, there are many variables to consider, especially when it pertains to compensation, which is typically the largest expense on a business services company’s income statement. Potential buyers must consider how every part of the historical partner or owner compensation plan impacts revenue, profitability and overall value of the business and, inevitably, how it influences a future profitability post-sale. This may be particularly difficult for a private equity firm that has not historically invested in this industry.

AUTHORS


Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.


Transaction Digest newsletter

Stay up to date on the latest transaction trends with this quarterly communication



Events / Webcasts

LIVE WEBCAST

Enhancing family offices – webcast series

  • September 01, 2020

RECORDED WEBCAST

COVID-19 family office webcast series

  • June 30, 2020

RECORDED WEBCAST

How funds can address valuation in a downturn environment

  • May 14, 2020

RECORDED WEBCAST

ESG matters: Creating value beyond the bottom line

  • April 10, 2019