For Executives

Entrepreneurship Through Acquisition (ETA) Economics

Entrepreneurship Through Acquisition (ETA) allows executives to step into ownership, leadership, and long-term value creation. The economics are structured to reward executives for both operational performance and equity growth over time.

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Entrepreneur Through Acquisition Economics

Transaction / Deal Fee

  • Executives typically earn a deal or transaction fee tied to the acquisition:
  • 1%–5% of enterprise value, or
  • A fixed fee of $100K to $1 million, depending on deal size
  • In many cases, this fee can be rolled into the sponsor’s equity investment in the portfolio company, further aligning incentives.

Management Fee

  • Post-acquisition, executives receive ongoing compensation for operating the business:
  • 3%–7.5% of EBITDA, or
  • $50K to $500K+ annually
  • This fee may be shared across the leadership team, reflecting operational responsibility and performance.

Promote / Carried Interest

  • Executives also participate in upside equity value through carried interest:
  • 10%–30% of profits above a preferred return
  • Preferred return typically ranges from 8%–12%
  • Structured through waterfall models with multiple performance hurdles
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Built for Ownership Alignment

ETA economics are designed to align executives, investors, and operators—rewarding disciplined leadership, long-term growth, and value creation rather than short-term outcomes.

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