What cash comp would you need as Director/VP/Head of Corporate Development to offset the opportunity cost of doing less deals and loss of equity upside at exit? Ideally my preference is PE backed with equity upside.
Company: $200-350mm Rev, family owned, not interested in selling, likely only doing a few transactions ever. US based.
Maybe something like:
$325k base
TBD on bonuses
TBD on profit share or LTIPs
What are your thoughts?
If they are not doing many deals why would they need to have this role? Why not pay a third party on a case by case basis? Unless you're assisting in other strategy/finance functions this seems like it wouldn't be worth their while.
Sounds like the job entails other duties like; JV, partnerships, and some business GTM and pricing analyses.
That makes sense. I'd assume cash would be significantly lower (excluding PSUs) and then a deal by deal bonus payout with a small % target each year.
I guess it depends what you're comparing it to. Like, what are the other roles you're looking at / your current role?
If you're like a jaded/burnt out IB associate, then hell yeah - this isn't too far off comp wise and sounds like cushy.
If you're a senior corpdev guy at a more acquisitive firm, then maybe this is a nice off ramp - but it's going to be a fraction of the comp you'd get as a corpdev lead for a public company or rollup type play.
Overall it feels like a lifestyle / final stop before retirement role. Unless there's a clear path to being the CEO/CFO of the business itself, and then a move to another company as part of the management, afterwards
Currently at large firm in CD, haven’t done any acquisitions while here and little appetite. Lots of JV deals. Would love a roll up strategy with some equity and quick exit
At what level?
Re: rollups: if you don't have a record of managing/banging deals out, getting those roles is quite hard. Usually looking for a guy who has done it before, or a PE guy who has been involved in a rollup deal who wants to be the operating guy attached to the biz, or someone who has worked for a strategic that has been very acquisitive. In general those roles can be a bit of grind - interviewed for quite a few different ones in dental practices, insurance, HVAC, etc.
On your other comment - hard to see it paying much more than IB associate (maybe a 2-3yr one) all in. As PrivatePyle said what the hell would they pay this guy that much for?
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