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Dave Gillen – Former FS Concierge
  • Total posts: 2,566

Hi Heaton,

Welcome aboard and thanks for joining us on the forum!

As mentioned by Bert, this deal is likely based on cost of their services vs current value of your business on paper. To get a better deal, you’ll need to build a stronger case around the value of your business. If you can justify that your business is worth more than the paper value (for example because of a unique opportunity in your industry, or other advantages you’ve created that would be difficult to replicate), then you might negotiate a lower % equity or decide not to do the deal.

Also I’d try to map out the likely outcome if you go it alone in 2, 5, 10 years holding 100%.
Then the likely outcome in 2, 5, 10 years with your partner and holding 55%.
You’ll need to make these predictions to see which option is likely to pan out in your favour.

Good luck!