Negotiating Equity without Private Equity Experience

How can I negotiate an equity position when you don't have a private equity background? This is a question I receive frequently from ASM subscribers and people working at private companies. This video is intended more for lower middle market businesses, but I believe the advice applies for much larger businesses. Generally, with the latter, there may be a lot more structure that surrounds the process, but certainly not always.
Equity compensation is an incredible way to build wealth. If this sounds like too much work, take the time to understand the economics. With the right opportunity, the results may surprise you (and even change your life). Also, if equity compensation is offered, don't put the conversation off. Too frequently I hear people say that "they can figure that part out later." You may look back later and realize that the opportunity was lost. You get what you negotiate!
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[@hauvkuabyang7467]

Will the follow up Q and A video ever come out with Brett Lacher?

[@ASimpleModel]

Sending this to Brett Lacher :)

[@hauvkuabyang7467]

@@ASimpleModelthank you for doing so. I found that video to be very helpful and informative

[@marcob.8671]

Peter the 🐐

[@psaurians]

Yeah, Peter is killing it!

[@hakshustletv]

Love the video, would you advise negotiating on your own the first time around or getting some legal advice or consultants. If so, what services would you recommend?

[@ASimpleModel]

Thanks! When you are negotiating equity, I would recommend getting two perspectives: (1) financial and (2) legal. After you've gone through the steps in the video, take your analysis to someone with experience building financial models that understands valuation and capital structure. It has been my experience that not all legal counsel has the experience to validate assumptions in a model (some do, some don't). And before signing anything, I would also encourage securing your own opinion on the documentation. This video was scripted with someone operating on a budget in mind to encourage the viewer to do as much of their own work as possible (which I believe to be important regardless of budget), and then engage counsel before committing. As for who to work with, tap your network to find trusted resources. If you know of anyone that has gone through the process, ask if you can connect with them to learn about their experience (mistakes made / how they would do it differently in the future / etc). Bottom line, I always think it's superior to engage experts (even if you consider yourself to be one). Hope that helps!