Hire a CFO with Salary + Sweat Equity?

[Vassilios]

The company that's my main squeeze right now has high sales, but to balance that, has slim margins compared to most other industries.

While I'm financially literate, I'm no expert, and most all other successful medium size firms in my space have at least one partner with a finance background. Also, the founder is far from being an expert in finance.

We've been working with a "consultant" at our accounting firm that charges us through the nose (due to the firms bill rate). He's very sharp and knows our business well, which is quite a bit more intricate than other businesses as far as taxes and cash flow forecasting.

He came by our shop the other day just to say hello, and after he showed frustration with what he's currently doing, I asked him to come work with us, and that he could have some skin in the game.

This is a simply, but heavy question. just curious what an appropriate share in equity might be for something like this? Also, I'm aware a buyout clause would need to be created.

Thanks for any input/thoughts!!

 

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[chriss.greig]

Loaded question. Really depends what you are willing to give up but if its a profitable busines 10% would be a great start imo.

You can always work in the shares becoming his after the first fiscal year is complete just to put some insurance on your side.

Letter of intent to give shares to him if he hits 12months.

Be generous but also dont be afraid to ask him straight up what makes it work for him.

I will say. Slim margins sometimes make it hard to have too many people up top.