An Exit-Aligned Alternative Stock Plan
Share up to 10% in owner-like rewards. Team vests each year when a simple profit goal is hit. Payout happens at sale in three traunches.
Core Incentives
MARE Stock
Goals
Compliance
Culture
Efficiency
Engagement
Expansion
Growth
Legacy
Profitability
Retention
Stability
Company Size
21-50 Employees
Industries
Home Services / Trades
Construction / Home Improvement
Manufacturing & Production
Revenue
$2M - $10M
Inspiration
Overview
- Who it’s for: Owned and operated shops between 21-50 employees and between $2M - $10M in revenue that want steady growth, a focus on profitability, and to align leaders with an eventual exit.
- What it does: Sets aside 10% of an eventual sale that is divvied up across key leaders and vests over 4 years. Each year vests when you hit a clear target (like 10% net profit).
- Why it works: Keeps your best people focused on profitable growth and staying through a planned sale in ~5 years. No cash leaves the business until you sell.
Key Features
Core
Type
Full Value
Size
10
% FMV
shares of stock
and cap payment at $
Awards
2%
Tenured lead techs overseeing field operations and technician training
3%
General & ops managers handling day-to-day operations
2%
Sales managers with a finger on growth and execution in the field
3%
Other key talent to hire & retain
Conditions
Vesting
Annual
Schedule
4 Years
Acceleration
Post sale and employed
Milestones
Milestone 1
Hit 10% net profit margin to vest (unlock) each year
Milestone 2
Milestone 3
Payments
Triggers
Deferred until a sale (while employed)
Advanced Changes
Forms of Payments
Installments
How it works
- Set the pool: Make it 10% of company value and split it across your key people. You don't have to give it all away at once.
- Vesting: Annual vesting for 4 years, unlocked each year when you hit 10% net profit.
- Stay aligned: If key employees stay post sale, unvested amounts can accelerate (per plan).
- Payout timing: No payouts until the sale. Then pay 50% at close, 25% at 12 months, 25% at 24 months (employment required at each date to incentivize retention).
- Run the play: Focus on margin discipline and steady growth to lift valuation.
Who is this for?
- You’re aiming to sell in ~5 years and want leaders locked in through close.
- You have 3+ key players (general manager, sales manager, operations manager, marketing manager, lead dispatch, lead CSR, lead technicians) who drive profit and customer experience.
- You want simple rules and no cash impact until there’s real money from a sale.
FAQs
Why pay only at sale?
It protects cash. You reward the team from actual sale proceeds, not operating funds. Simple, fair, and safer for the business. Acceleration can be used to further incentivize if they stick around post-sale.
Why use a 10% net profit goal?
It’s easy to track and pushes healthy discipline around efficiency. Better profit margins usually means a better valuation multiple and a better outcome at sale.
What if someone leaves before a sale?
The plan clearly states that employees must be employed at the time of a sale to receive cash for the alternative stock award. This incentivizes long-term thinking and alignment around an exit for everyone, and less risk for the business.