Hi All,
Am in the middle of getting legal and accounting advice of course, but hoping to get some specific advise if anyone has been in this situation before, so thanks in advance.
An old work colleague who I've been on good terms with has approached me to join his company - what I thought was a job offer was a request to become a business partner.
Some very rough figures:
Gross Profit of $900,000 per month
Net Profit of $180,000 per month (am waiting to see if this is before or after tax)
They are asking me for inject $300,000 into the business, for 1/3 share of the business, and 1/3 of the dividends distributed back quarterly.
Sound too go to be true? If they're doing this well, why the need to have external funds/partners? I know that expansion is on their mind so funds are always needed...but again, sounds too goo to be true.
And if they ask anyone else into the business, what are the dilution effects, and so on.
Any help appreciated if you've been on either side of the transaction...
Am in the middle of getting legal and accounting advice of course, but hoping to get some specific advise if anyone has been in this situation before, so thanks in advance.
An old work colleague who I've been on good terms with has approached me to join his company - what I thought was a job offer was a request to become a business partner.
Some very rough figures:
Gross Profit of $900,000 per month
Net Profit of $180,000 per month (am waiting to see if this is before or after tax)
They are asking me for inject $300,000 into the business, for 1/3 share of the business, and 1/3 of the dividends distributed back quarterly.
Sound too go to be true? If they're doing this well, why the need to have external funds/partners? I know that expansion is on their mind so funds are always needed...but again, sounds too goo to be true.
And if they ask anyone else into the business, what are the dilution effects, and so on.
Any help appreciated if you've been on either side of the transaction...