Scratchpad
Typical Investor Economics at the Individual Deal Level

Preferred Return
The investments we make in acquisitions earn a preferred return (annual, non-compounding) typically of 8% - 12% on invested capital.
Prioritized Return of Capital
Investors’ initial capital plus their preferred return must be paid back before any distributions are made to other shareholders (other than for taxes).
Investors continue to receive pro-rata distributions after their initial investment is returned. Salary increases to the Searcher/CEO are capped to align incentives.
Step Up
Investors receive equity in the acquired business with a “step up” of typically 1.5x - 2.5x.
For example, if a business was acquired for $1.0m and Entrepreneurial Capital invested $50k with a 2x step up, we own 10% of the equity instead of 5%.
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Corporate Law
Family Law
Criminal Law
Employment Law
Real Estate Law
Corporate Law
Family Law
Criminal Law
Employment Law
Real Estate Law