If you are fortunate enough to receive an offer for a private equity or venture capital job, never accept it on the spot. Instead, politely thank them for the offer, express your enthusiasm for the job and their firm, and ask to think it over for a few days. Try to buy at least a week to evaluate the offer and build your case for more.
This gives you time to build a case for your compensation package. You might mention specific skills that you’ve acquired, high profile or unusual deals you’ve worked on (M&A, IPOs, Convertibles, etc.), and the key skills you gained working on these deals (such as modeling, valuation, and others). In the case of a venture capital job, you need to demonstrate your ability to contribute to the firm, your passion for a particular industry, or the entrepreneurial culture overall. If you’ve started a business, worked on any deals, even part-time, or done any research for a local start-up or angel investor, you can build a strong case for a higher salary range.
Remember, a good firm is seeking high quality professionals who are able to deliver value. Never be afraid to ask for something. Employers are prepared to negotiate, and often feel more comfortable hiring someone who knows his or her professional worth. If you are as good as you say, they expect you to negotiate and are waiting for your counteroffers.
It also helps to negotiate from a position of strength. Knowledge about the market and compensation for similar jobs is one way. If you have more than one offer at the same time this obviously gives you a better bargaining position. You are able to mention that you are comparing compensation plans from both. Of course, this must be done diplomatically. You may want to indicate that you would prefer to work for their firm if they could match the compensation offer provided by another.
Finally, get the final arrangement in writing. Follow up your meeting with a letter thanking them again for the offer, mention when you’ll be starting, and outline both the salary and other compensation details that you have ironed out verbally.
Negotiating your complete compensation package sets the tone for your relationship with the company for years to come. How you handle this delicate task establishes how much respect they have for your abilities now, and the next time a compensation discussion comes up in the not-too-distant future.
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