Richard Wilson: the weekly coaching behind an extra deal term
Richard described an experienced med spa operator who invested and agreed to coach the business's leader each week. He linked an extra deal term to that ongoing work.
The contribution continued after the investment
In the recorded account, the investor brought operating experience as well as capital. The weekly conversation with the leader of the business was a defined activity through which that experience could be used.
The additional term had a condition
Richard said the investor would lose the extra term if the additional value stopped. This makes the account more specific than a general statement about strategic investors: it identifies recurring work and connects the additional economics with continuing to perform it.
In Richard C. Wilson's words
"if he stops adding that value, then he loses that extra deal term." (Richard C. Wilson, Due Diligence mini-series)
How to use this
- Identify the recurring work associated with a proposed strategic contribution.
- Keep the extra contribution and the condition attached to it visible in the discussion.
Questions and answers
What work did Richard describe?
A weekly coaching call with the head of the med spa.
What happened to the extra term if that work stopped?
The extra term ended if the additional contribution stopped, according to Richard.