Let's look at the annual profit of the enterprise first, which is based on the average profit of the past three years. Then, we will do an interview about how many years the equity fund invested by employees is expected to be recovered. If it is paid off in three years, it will be three times the profit of the enterprise valuation and five times the profit of the enterprise valuation in five years.
The average employee's expectation is to repay the capital within 3-5 years, of course, the shorter the better. What we are talking about here is only private enterprises, and state-owned enterprises need to evaluate their assets through professional intermediaries.
Knowing the valuation of the enterprise, employees can roughly calculate the equity ratio by how much they are willing to pay. Through our past experience, employees actually know that bosses usually don't give only one person, so they will make decisions according to their own economic situation.
You can come to Mingde to consult about equity incentives. Mingde Tiansheng's investment projects mainly come from the excellent counseling project of Mingde Blue Eagle and the high-quality projects recommended by Mingde Ecological Circle to minimize investment risks; At the same time, in terms of fund raising, Mingde Ecological Circle has gathered a large number of qualified investors. By investing in Mingde Tiansheng Fund and then investing in high-quality projects in the ecological circle, the fund completed the closure of investment and further promoted the healthy development of Mingde ecological circle.
If you still have questions about equity incentive, you can click the online consultation button below and talk to the teacher directly.