Equity Advisory: We Invest Alongside You

The most honest signal a consultant can send is this: we believe in your outcome enough to stake our fees on it.

The Problem

The traditional consulting model is fundamentally misaligned. The consultant gets paid whether the project succeeds or fails. Hourly billing incentivizes longer engagements, not faster outcomes. The consultant's best financial interest is to identify more problems, not solve them efficiently.

Clients know this. It is why every RFP process feels adversarial. It is why fixed-bid projects generate change orders. It is why the most common complaint about consultancies is that they produce beautiful strategy decks and disappear before implementation.

The result is a trust deficit that makes every engagement transactional instead of transformational.

Our Approach: Fee-for-Equity

BAG pioneered a fee-for-equity model that changes the fundamental economics of advisory engagements. Here is how it works:

The Structure Instead of billing at our full rate, we accept a discounted hourly rate in exchange for equity participation in the outcome. We take a lower cash payment today because we believe in the value we will help create tomorrow.

This is not a theoretical construct. It is how we operate our largest engagements.

How the Math Works

The client gets senior-level advisory at a lower cash cost. BAG gets equity participation that is worth nothing if we fail and significant if we succeed. Both parties are aligned on the same outcome.

What Qualifies for Equity Advisory

Not every engagement fits this model. We evaluate candidates based on:

1. Market opportunity -- Is the addressable market large enough to generate meaningful equity value?
2. Execution capability -- Does the client team have the operational capacity to execute alongside our advisory?
3. Capital structure -- Is there a clean path to equity participation that does not create governance complexity?
4. Timeline alignment -- Is the value creation horizon realistic (typically 3-5 years)?
5. BAG value-add -- Can our advisory materially accelerate the outcome versus the client executing alone?

Deal Structures We Support

• Direct equity participation -- BAG receives equity in a subsidiary, product entity, or joint venture
• Revenue royalties -- Percentage of revenue from the product or business unit BAG helped build
• Milestone-triggered equity -- Equity that vests based on defined business outcomes (ARR targets, user milestones, etc.)
• Convertible advisory credits -- Accumulated fee discounts that convert to equity at a future financing round

Key Capabilities

• Deal Structuring -- Equity participation frameworks that are fair, clean, and aligned with existing cap table structures
• Valuation Advisory -- Market-based valuation methodologies for technology companies and product entities
• IP Strategy -- Intellectual property frameworks that protect both parties' contributions and define ownership clearly
• Go-to-Market -- Product launch strategy, pricing, competitive positioning, and channel development
• Technology Execution -- Full-stack advisory from architecture through deployment, delivered by the same team with equity skin in the game
• Exit Preparation -- Technology due diligence preparation, IP documentation, and operational readiness for M&A or IPO

Why This Model Works

For the Client:

• Lower cash outlay during the critical early stages when capital is scarce
• Access to senior advisory talent that would otherwise be cost-prohibitive
• A partner who is financially motivated to deliver outcomes, not billable hours
• Built-in accountability: if we do not create value, we do not get paid in full

For BAG:

• Participation in the upside we help create
• Deeper engagement and longer-term relationships
• A portfolio of equity positions that diversifies beyond hourly revenue
• The most honest proof of confidence we can offer

Proof Points

• Top-10 P&C Insurance Carrier (NewCo): Structured fee-for-equity deal where BAG accepted discounted rates in exchange for 25% equity in a new AI property intelligence subsidiary. The entity is funded 100% by the parent company through operations and SBA financing. Target exit value: $240-350M at 10-13x revenue multiple.
• National Claims Processing Platform: Equity participation in a multi-tenant SaaS platform for auto claims processing, with BAG providing technology advisory and platform architecture.

The Differentiator

Every advisory firm says "we are invested in your success." We put it in the cap table.

This model is not for every engagement or every client. It requires a genuine partnership mentality, clear equity mechanics, and a shared belief in the outcome. When those conditions align, it is the most powerful advisory structure available.

Explore Partnership Models -- A confidential conversation about your business, the opportunity, and whether a fee-for-equity structure is the right fit. No pitch deck required. Bring the problem.

Explore Partnership Models