Hello. I've been offered a buy-in opportunity to a branch of a small company (where I'm currently employed) that brings in about 4000€ net a month. I would get 50% from day one, with no upper limit. However, as the company provides services not products, and on a month-by-month basis, the net figure could dip or rise fairly easily and suddenly. The guy wants no less than 15,000€ for this, but says he'd return half if I wanted to pull out after at least a year's commitment. I have no idea how to go about evaluating what such a buy-in is actually worth (if anything!). How does it look? Oh, and this would not affect my current salary. Thanks a lot.
Small Business Share Opportunity?
You need to get some kind of data from him about what the money is need for and what kind of sales they have had. This data needs to be extremely detailed like a short business proposal. For him to offer you to buy into a company that is already profiting just fine and make your money back in only one year just sounds very strange.
Reply:1st ask for the company accounting books for the last 2 yrs. look at the net profit, compare the gross vs expenses, if expenses exceed the gross income, evaluate how you can cut or down size expenses by eliminating unnecessary expenses that would increase profit. check if all equipments are paid off or rented, ask what the 15k will be used for. is the company deep in dept? how deep. will you be bailing out, %26amp; will it be strenuous? how strenuous. Find Facts, then decide
Reply:So he wants your 15000 up front? What happens to the business if he goes on an extended holiday?
Suggest caution.
Reply:hi check this link its good
http://buyingandsellingshares.blogspot.c...
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