My father is 100% owner of our family business and we have plans in motion for me to start acquiring the business starting in January 2026 through a typical owner-funded buyout. Our business typically does yearly sales between $9M and $12MAs of 2019, I make a salary of $175K. That includes commissions and a mid-year and EOY bonus.What’s changed since 2019? Well, most importantly, I’ve taken on responsibilities that would typically line up with that of a Vice President position (though, formally, I don’t have a title and our company doesn’t have a Vice President). I’ve helped my father, the owner, build the business almost back to where it was pre-COVID.Now that we’re recovering a bit from COVID, there’s an opportunity for me to ask for a raise that compensates me better for the new responsibilities I’ve taken on. I’m proposing a base pay of $201,250 (a 15% raise from $175K) and instead of a commission on my own sales, a 5% commission on overall company profits. This way I’m compensated fairly from the leadership-level decisions I make that affect the health of the whole company.What does everyone think?
What’s the timeline for you to purchase the business from your father?
Is there an agreed upon sales price on the business? Are you planning to get a loan to buy the business?
I ask because depending on how you plan to purchase the business from your father it may impact your compensation structure.
We’ll be starting the purchase in January 2026.
No, we don’t have an agreed upon sales price for the business hey. No loan. We’ll be doing a typical owner-funded buyout where he basically continues to take a salary from the business until he’s “bought out”.