Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2012
  • Article
  • Harvard Business Review

How Much Is Sweat Equity Worth?

By: Christopher Marquis and Joshua D. Margolis
  • Format:Print
ShareBar

Abstract

The article presents a case study of a business decision related to the valuing of sweat equity in a start-up business. One man starts a premium vodka business, bringing in his cousin at an early stage, but with no initial discussion of the eventual split of equity or managerial control between the two. The article offers each man's case for his ownership stake in a narrative style, and then presents various views of how and what they should decide.

Keywords

Valuation; Ownership Stake; Business Startups

Citation

Marquis, Christopher, and Joshua D. Margolis. "How Much Is Sweat Equity Worth?" R1212X. Harvard Business Review 90, no. 12 (December 2012).
  • Find it at Harvard
  • Read Now

About The Author

Joshua D. Margolis

Organizational Behavior
→More Publications

More from the Authors

    • April 2025
    • Faculty Research

    Lisa Su and AMD (B)

    By: Joshua D. Margolis, Matthew Preble and Dave Habeeb
    • April 2025
    • Faculty Research

    Lisa Su and AMD (A)

    By: Joshua D. Margolis, Matthew Preble and Dave Habeeb
    • October 2024
    • Faculty Research

    Fritidsresor: Johan Lundgren

    By: Joshua D. Margolis
More from the Authors
  • Lisa Su and AMD (B) By: Joshua D. Margolis, Matthew Preble and Dave Habeeb
  • Lisa Su and AMD (A) By: Joshua D. Margolis, Matthew Preble and Dave Habeeb
  • Fritidsresor: Johan Lundgren By: Joshua D. Margolis
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.