"We brought in a CEO & COO prior to closing anything as the first step in building this rollup. Some cash comp, in the direction of a searcher [$120-150k/yr], and it ramps up when we close [$150-230k]. Comp correlated to our size. On the equity side, they are both getting equity in the company, up to 5%, subject to time and performance."
The independent sponsor shows serious conviction by hiring a management team upfront ($$$). That signal, combined with a strong management team, can open/unlock dialogues with business owners and accelerate the timeline to an LOI & closed deal.
The mgmt. team ("who has been with us since we formed the thesis and involved in all our business owner conversations") is also a strong selling point to prospective investors.
