Distributions

Alaris provides cash financing to Partners in exchange for a predetermined distribution. Our distribution is:

  • Received monthly and determined 12 months in advance
  • Annually adjusted based on the percentage change in a top-line, audited performance metric such as gross revenues or same store sales for example
  • The Annual Change in Alaris’ distribution is restricted by a collar that allows entrepreneurs to retain the majority of future growth
    • This “collar” allows the common equity holders to receive a disproportionate amount of the growth and value they create above the ceiling on the collar
  • Paid before applicable taxes to provide structural efficiency
  • Under an LLC structure, the company’s taxable income is reduced
    • Alaris will receive its distribution of which Alaris will be responsible for paying taxes thereon
    • The Partnership's common equity holders will receive the remaining income allocations and will be responsible for paying taxes on this portion only