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Entrepreneur quotes Alex Glovsky in “Are Paid Referrals Worth the Cost?”

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March 2015

Alex Glovsky, chair of the firm’s Emerging Companies Group, was quoted in “Are Paid Referrals Worth the Cost?” in the March 2015 issue of Enterpreneur. Alex comments on the practice of sharing equity for advice. He says that while there is the potential for conflicts of interest in certain cases, such as when trying to sell a business, there is not as much cause for concern for strategic planning advice.

Alex notes that an advisor seeking equity should be able to give advice that is growth-related and provides significant and specific enterprise value. “While paying in equity might save you cash now, understand what it means over the long haul,” he says. “The advisor is getting a piece of your business, which could prove very expensive upon an exit, so the advice provided needs to be extremely valuable to the company.”

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