#GLG #PrivateEquity #ConsultingRate #FinancialAdvisory #HourlyRate #ExpertConsultation
So you’ve been approached by a private equity firm through GLG for a one-hour consultation. Congratulations! It’s a great opportunity to share your expertise and earn some extra income. However, you may be wondering what rate to set for your services. This article will guide you through the process of determining your consulting rate for a private equity consultation.
Understand the Scope of the Consultation
Before setting your rate, it’s important to understand the scope of the consultation. Is it a general discussion about your former employer, or will you be providing specific financial advice related to the acquisition? Understanding the purpose and expectations of the consultation will help you determine a fair rate for your services.
Consider Your Expertise and Experience
Your consulting rate should reflect your expertise and experience in the private equity industry. If you have years of experience and a strong track record of successful deals, you can justify charging a higher rate. On the other hand, if you’re relatively new to the industry, you may need to be more conservative with your pricing.
Research Industry Standards
It’s always helpful to research industry standards for consulting rates in the private equity sector. Look at what other professionals with similar expertise are charging for their services. This will give you a benchmark to work from and ensure that you’re not undervaluing your skills.
Factors to Consider When Setting Your Rate
When setting your consulting rate, consider the following factors:
1. Time Commitment: How much time will you need to prepare for the consultation and how much time will the actual meeting take?
2. Opportunity Cost: What other income-generating activities could you be doing during that time?
3. Value of Your Expertise: How much value will your advice bring to the private equity firm?
4. Market Demand: Is there a high demand for your expertise in the current market?
5. Legal and Regulatory Considerations: Are there any legal or regulatory requirements that may impact your pricing?
Negotiate a Fair Rate
Once you have a clear understanding of the scope of the consultation and have considered all the relevant factors, it’s time to negotiate a fair rate with the private equity firm. Keep in mind that the goal is to reach a mutually beneficial agreement where you are fairly compensated for your expertise and the firm feels that they are receiving value for their investment.
It’s also important to consider the potential for future engagements with the firm. If you can demonstrate the value of your advice during the initial consultation, it may lead to more opportunities for collaboration in the future.
In conclusion, setting your consulting rate for a private equity consultation through GLG requires careful consideration of the scope of the consultation, your expertise and experience, industry standards, and other relevant factors. By taking the time to research and negotiate a fair rate, you can ensure that you are properly compensated for your valuable insights and advice.
In summary, when determining your consulting rate for a private equity consultation through GLG, it’s important to consider the scope of the consultation, your expertise and experience, industry standards, and other relevant factors. By negotiating a fair rate, you can ensure that you are properly compensated for your valuable insights and advice. Don’t be afraid to ask for what you’re worth and remember that the goal is to reach a mutually beneficial agreement with the private equity firm. Good luck with your consultation! 🌟
For me, it depends on what the client looks to talk about.
My base rate is $525/hr, with a minimum of 1hr.
It flexes up to $700 if it’s a topic I don’t entirely love talking about but at knowledgeable in.
I wouldn’t do a call with any expert network for $250/hr with a 30min minimum because they prorate payment every 15 minutes. I just don’t think the time invested is worth less than $125 per call minimum in your case.
Wow. I always felt like I was taking advantage of them charging $350. Maybe I was undercharging!!!
One of my coworkers came from an expert network…we now use the expert networks so I know a solid bit about the process through him.
Basically the expert network charges us (the client) at a minimum $1,000 per call (aka one credit). Some experts are “premium” and can cost multiple credits depending on who they are.
How much you set your rate depends solely on how important / rare your experience is. For instance…during COVID my buddy told me that everyone wanted to talk to teachers bc of all the education tech stuff — teachers got like $30-$50 for a one hour call (the client was still charged $1,000). Since there are plenty of broke teachers willing to do it for so little, there’s no way you’re getting much over $50.
On the flip side we’ve talked to an expert that cost us $6,500. This expert was very unique (think CEO/founder of a company worth hundreds of millions in a niche industry) —> so if we want their level of insights there’s probably less than 5 people in the entire world that can give it to us. My guess is this expert was getting around $5,000 for the hour call.
So it’s impossible to give you a one size fits all number, it’s a function of how unique your experience is / how many alternatives there are to using you.
I’m director level at a bank, I charge $750/hr.
Have had not issue with this rate. Did around 30 last year across the expert networks.
Not the question you asked, but think about whether you have an NDA in force with your prior employer that may limit what you are able to talk about.
My rate with Alphasights is $400/hr and they don’t even blink at that.
We did the purchase process for one of the largest dental cnc machine manufacturers and had 2 expert sessions.
Neither us (IB) nor the buyer (PE) had any real clue about dental (especially dental machine market) the 1-2 hours with that dude propably saved a cumulative 60hours of research among IB/PE company.
If they are just digging for insider info that is still insanely valuable depending on company size.
Usually they don’t want you to talk specifics on insider I nfo, but they do.
I think a fair number is 2x your all in hourly rate. IE you make 100k a year = $50 x 2 = $100. I’d start with a 250 minimum though.
Keep in mind these sorts of companies spam the shit out of you and maybe a quarter work out. You also generally need to waste time prepping, hence the minimum 2x.
$600