Equity Partnership Model
Most trade business owners sell for far less than their business is worth. They use brokers who take a cut, accept lowball offers from opportunistic buyers, and watch their legacy dismantled. The TradeWise Equity Partnership Model is a fundamentally different approach — one that puts the owner first.
The Problem
For most trade business owners, selling means stress, compromise, and a payout that doesn't reflect the years of work behind it. Here's why the traditional path fails.
Most trade businesses sell for 1–2x earnings on the open market. Buyers know how to negotiate down, and owners — who've never sold a business before — rarely have the knowledge or leverage to push back. The result: years of hard work sold for a fraction of its real worth.
Business brokers charge 5–10% of the sale price. Add legal fees, accounting fees, and due diligence costs, and a significant portion of the proceeds disappears before the owner sees a dollar. The people helping you sell are incentivised to close — not to maximise your outcome.
A trade sale is rarely a clean handover. New owners cut staff, change suppliers, rebrand, and strip the culture that made the business successful. The owner walks away watching everything they built — their reputation, their team, their name in the market — dismantled for short-term gain.
The TradeWise Solution
TradeWise offers three structured pathways — each designed to maximise what you walk away with, protect what you've built, and give you control over how and when you exit.
Pathway 01
Most businesses go to market before they're ready. The Value Maximiser is a structured 12–24 month pre-sale engagement where TradeWise embeds into your business to systematically increase its value — before a single buyer is approached.
We fix the gaps that buyers use to negotiate you down: owner dependency, weak financials, informal processes, and customer concentration. By the time we go to market, your business commands a premium multiple — and you have the data to justify it.
Best for: Owners planning to exit in 1–3 years who want to maximise their sale price without giving up equity during the process.
SOPs, job management, and operational frameworks that reduce owner dependency and increase buyer confidence.
Clean books, monthly reporting, and profitability tracking that demonstrate a well-run, investable business.
Build the management layer that lets the business run without the owner — the single biggest value driver in any trade business.
We manage the sale process — including information memorandum, buyer negotiations, and due diligence — on your behalf.
The Process
Every engagement follows a structured, transparent process. No surprises. No ambiguity. Just a clear path from where you are now to the outcome you want.
We conduct a thorough assessment of your business — financials, operations, team, systems, and market position — to establish an accurate baseline value.
Together we design the right model for your goals. Value Maximiser, Staged Buyout, or Equity Partnership — each is tailored to your timeline, your needs, and your definition of a great outcome.
A formal Shareholders Agreement and/or Service Agreement is drafted by independent solicitors. All terms — equity split, valuation formula, timelines, and obligations — are documented and agreed before anything begins.
Our team integrates into your business. We take over the back-end functions — finance, HR, systems, marketing — and begin the structured process of building value from the inside.
Over an agreed timeframe, we drive measurable improvements across every value driver: revenue quality, team independence, financial clarity, and operational efficiency. Your business becomes more valuable every quarter.
At the agreed milestone — whether that's a full exit, a staged buyout completion, or a strategic sale — you realise the full, grown value of your equity. Maximum outcome. Minimum friction.
Cost Guide
Entering an equity partnership involves a number of one-off and ongoing costs beyond the TradeWise engagement itself. These are third-party costs you should budget for and seek independent quotes on. All figures below are indicative estimates only.
Costs vary significantly by firm and complexity. Always obtain at least two quotes.
A business restructure may trigger Capital Gains Tax events. Specialist advice is essential.
ASIC fees are set by the Australian Government and subject to annual indexation.
Due diligence protects both parties. Costs are typically shared or negotiated as part of the deal terms.
Finance costs only apply where the acquisition or restructure involves external debt.
Ongoing costs should be factored into the business's operating budget from the outset.
Important: All cost figures above are indicative estimates based on typical market rates as at 2025 and are subject to change. Actual costs will vary depending on the complexity of your structure, the professionals engaged, and the jurisdiction in which the transaction occurs. This guide does not constitute financial, legal, or tax advice. You should obtain independent quotes and professional advice before making any decisions.
Full Transparency
The TradeWise model isn't for everyone — and we'd rather tell you that upfront than waste your time. Here is an honest breakdown of the advantages and the trade-offs.
The Portfolio Advantage
When you enter a partnership with TradeWise, your business becomes part of a growing portfolio of trade businesses operating under one management group. That collective scale creates advantages no individual trade business can access on its own.
Suppliers, insurers, software providers, and subcontractors all respond differently when you represent volume. The savings flow directly to portfolio businesses — improving margins, reducing costs, and accelerating the value creation process.
"Individually, you're a trade business. Inside the TradeWise portfolio, you're part of a group with the buying power, systems, and infrastructure of a much larger operation."
Negotiated rates on materials, equipment, insurance, and software — passed directly to every portfolio business.
Finance, HR, and admin costs are spread across the portfolio — dramatically reducing per-business overhead.
Portfolio businesses refer complementary trades to each other — creating a built-in pipeline of warm, qualified work.
Performance data from across the portfolio informs better decisions — you benefit from what other businesses have already learned.
Legal Framework
Every TradeWise partnership is governed by a formal legal structure, prepared by independent solicitors and agreed by all parties before any engagement begins. There are no handshake deals — every right, obligation, and exit mechanism is documented in writing.
Shareholders Agreement
Governs equity ownership, voting rights, dividend policy, and exit mechanisms for all parties.
Service Agreement
Details the management services TradeWise provides, the obligations of each party, and performance expectations.
Valuation Methodology
The formula for calculating equity value at each trigger point is agreed and documented at the outset — not negotiated under pressure later.
Dispute Resolution
A structured mediation and arbitration process is included to resolve any disagreements without costly litigation.
Before entering into any agreement with TradeWise, all business owners are required to obtain independent legal advice from a qualified solicitor of their own choosing. This is not optional — it is a condition of proceeding.
TradeWise will provide all draft documentation in advance to allow sufficient review time. We encourage owners to ask hard questions, push back on terms they don't understand, and take as long as they need before signing anything.
Legal Disclaimer: The information on this page is general in nature and does not constitute legal, financial, or investment advice. Equity partnership arrangements involve complex legal and financial considerations. You should obtain independent advice from qualified legal, accounting, and financial professionals before entering into any agreement. TradeWise Group Pty Ltd makes no representation or warranty regarding the suitability of any arrangement for your specific circumstances.
Your First Step
The right exit decision starts with knowing your real number. Complete the free Business Valuation Scorecard and get an estimated valuation range in under 5 minutes — using the same methodology used by trade business brokers and buyers.
Complete the Free Valuation Scorecard →Or if you'd prefer to talk first — book a free Strategy Call.
