It's all about the Rev-Share

An Enten Rev-Share is a right to receive a % share of gross revenues (i.e. revenue before any deductions are made for costs) from a Buyer's revenue stream.

1. A job or role is selected for revenue-sharing.
2. Enten consults with the Buyer and Seller to help negotiate what % will be compensated for (i) in a Rev-Share, (ii) in cash, and/or (iii) in any other form of compensation.
3. Enten provides templates and calculations to reach a fair deal, based on market experience.
4. The work is done so that the Rev-Share's conditions (managed by Enten) are met (by, for example, (i) milestones being completed and (ii) the revenue stream reaching an agreed threshold).
5. The Rev-Share comes online and pays out to the Seller over its term with Enten managing the relationship (as detailed below).

As a Buyer who is interested in implementing revenue-sharing, you will need to set up a free consultation with Enten. Once that consultation is booked in, we will send you a short Buyer onboarding form to fill out.

As a Seller who is interested in implementing revenue-sharing, you will need to set up a free consultation with Enten. Once that consultation is booked in, we will send you a short Seller onboarding form to fill out.

As a Seller, your Rev-Share will return a % of a relevant revenue stream over its term (usually a 3 year period). If that revenue stream increases over the course of the Rev-Share term, you will gain a proportionate share in that increase. However, if the revenue stream decreases over the course of the Rev-Share, you will also proportionally participate in that downside too. In an example where your alternative might have been to take a full cash payment, we typically see returns of 5-6x of any cash component that you will have given up in exchange for the Rev-Share.

The Rev-Share will be managed by Enten and put into effect on a quarterly basis. Once the Rev-Share is triggered and comes online, the Buyer will forecast the first quarter's Rev-Share payments and pay this into a bespoke project escrow account. One quarter after the forecast Rev-Share has been calculated and paid into the escrow account, the forecast will be verified against actual revenues and any adjustments made, if necessary, before the first quarter's payment is disbursed from the project escrow account to the Seller. The process will then repeat so that the next quarter's Rev-Share will be forecast and paid into the escrow account, continuing over each quarter until the Rev-Share is exhausted.

Enten recommends that the Rev-Share should last, by default, for 36 months, however the Buyer and Seller are free to choose a shorter or longer time period. A shorter time period is likely to lead to a higher Rev-Share % while a longer time period is likely to lead to a lower Rev-Share %. Further, a longer time period is more likely to capture a period of high revenue growth, as compared to a shorter time period.

The Rev-Share will end either (i) when its term is exhausted or (ii) when the Buyer purchases back the Rev-Share from the Seller for an agreed redemption price. The Buyer and Seller can agree a redemption price upon entering into a Rev-Share relationship, as guided by Enten and based on prior market experience. Alternatively Enten can help the Buyer and Seller find agreement on a redemption price if none has been put in place in the initial negotiation and agreement phase.