Icebreaker reward model
Whilst we will happily engage on a fees only basis, regardless of the length of the assignment – icebreaker take a long term view of value creation and as a team we are set up with a formal shareholder and membership agreement to align our risk and reward model to suit the situation. These discussions are set out where possible from the start of the assignment, and or raised as and when the situation evolves.
We align fees with the return from our intervention to generate cash or return on investment and the ability of the company to pay.
Where there is a longer term alignment opportunity and it is appropriate we will put our reputations on the line and take a share option or equity depending on the nature of the transaction. This can be proportionate with our contribution to the value we add to the business sale value. Regardless of the icebreaker share which can be between 5 (large corporate) -30% (small SME) we would target a 2+ multiple on business value add for the remaining shareholders.
We are solely focus on creating a win-win situation and a return incrementally commensurate with the results we deliver vs what has been agreed from the outset.
The return form an assignment we expect to be 10-100x and business value add target over a 2 year period 2+x equity / sale value over a 2 year period for shareholders.
We are straight forward in all of our dealings and will agree the engagement method at the outset.