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Real Ownership Scenarios

Scenario 7: Investor Partnership

Capital partner funds the deal; operator runs and vests.

Practical Explanation

Pairs capital and operational expertise. Investor funds 80–95% of equity, operator vests into 15–30% over 3–5 years, governance is shared per the operating agreement. Scales to larger deal sizes than either party could pursue alone.

Real-World Example

Investor puts $500K equity into a $2.5M acquisition (rest is SBA). Operator vests into 25% over 4 years and earns a $130K base salary.

Typical cash required
Investor: majority of equity. Operator: little to none.
Experience required
Operator brings management track record.

Advantages

  • Larger deal access
  • Aligned strengths
  • Real ownership for the operator

Risks

  • !Governance disputes
  • !Exit timing
  • !Operator turnover

Frequently Asked Questions

Typical hold?
5–7 years before exit.

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