My firm is offering me 5% of the company. The structure they laid out for buyback of this equity seems odd to me. What are your thoughts?
"The purchase price of equity shall be equal to 5X net profit for the 12 calendar months preceding the firm's election to repurchase the 5% equity
(net profit is defined as gross profit minus all expenses including but not limited to rent, salaries, accounting, legal, marketing, advertising, technology, sales commissions, revenue share, licensing fees, consulting fees, interest, repayment of loans etc.)"