If there is property involved then the property could be owned by the partners as Tenants-In-Common. An operating company could be formed to operate the business and rent the property from the partnership.
You should have a property ownership agreement and a shareholders agreement which specifies that either of you could buy each other at market value at some time in the future.
I would have thought that the investor would be seeking a minimum return of 15% per year over 10 years. You need to agree with him how does he achieve this: salary v/s dividends v/s sale of the business in due course etc
Jim Stafford
Thanks for your reply Jim.
I would have expected a much lower percentage than 15% given the returns available in the banks at the moment.
I know that the risk involved plays a huge part but would it be very unreasonable to expect someone to invest at around the 8% return (for a very solid business, trading 20 years) given the fact that they would be unikely to get over 3% at the bank?
im looking to have a better idea of the different options before i meet the accountancy team.
thanks in advance
Who is best person for me to meet to discuss options?
~Accountant or financial advisor?
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