Claire turned the legal pad so Ethan could read it. Three columns ran down the page, each headed by a different model for sharing the future of Walker Auto Repair. She had calculated what the business was worth based on assets, receivables, debt, and the earning history they'd built over the previous months. She had also identified the risk in treating recent contract signatures as money already earned; the Pratt agreement was large, but it still required months of labor, parts, staffing, and successful service. Her proposal accounted for all of it.
“I don't want a bigger title just to make my business card look impressive,” she said. “I want an actual stake, defined authority over operations, and a share of the results that comes from building the systems behind them. I want written rules about what each of us decides, how major expenditures get approved, and what happens if one of us wants to leave.”
Ethan read the first column. “You're asking to buy in?”
“Partly through the value of the work I've already contributed, partly through future performance. The structure has to be reviewed properly. I'm not asking you to give me something because you like me.”
“I know.”
“Then look at the numbers.”
He did. The first model used a fixed salary with a performance bonus and no ownership. The second proposed an initial minority equity interest tied to agreed operating milestones. The third included an ownership stake with a later option to purchase more shares through a formula linked to measurable growth and fair valuation. Claire favored the third model. It offered reward, responsibility, and protection against the possibility that their personal feelings would make future business decisions harder.
“Thirty percent to start,” she said. “A three-year option to buy more under a formula we'd agree on now. The shop keeps sufficient working capital, and neither of us can take money out if doing so would put payroll or customers at risk.”
Ethan studied the figures, following the assumptions line by line. He caught one vendor liability she had conservatively estimated and suggested revisiting it with their accountant. She acknowledged that point and made a note. He asked what would happen if a major fleet account failed, and she showed him how the cash reserves and customer mix could absorb some disruption. They spoke as two people who understood that a good partnership must survive the days when affection couldn't make an invoice disappear.
“What equity percentage are you proposing?” Ethan asked, returning to the main question.
“Thirty.”
“Thirty-five,” he said.
Claire blinked. “That's not how negotiations are supposed to work.”
“I'm trying something new.”
She didn't smile yet. “Why thirty-five?”
“Because you're undervaluing what you've built. That initial number leaves too much of the upside with me for work you've already done and will keep doing.” He pointed to her growth assumptions. “We'll need a professional valuation and written agreements, but I'd rather begin with a number I can defend as fair than make you fight for the one you deserve.”