- Original Poster
- #1
Having been approached by one of our customers to buy into their company (strong customer base but poorly managed & struggling financially) , we have had a look at it's current situation & because of various reasons it is not an option to buy shares in the company.
We have considered buying the assets of the company & rolling it into our company. The problem is that the business relies heavily on the current owner so we need to keep him involved. We have considered offering him the opportunity to become a minority shareholder after a period of time but we really do not want to give up any shares.
I have come up with what I think is good compromise:
1) His company winds up
2) We set up a new company with my company holding 60% of shares & he has 40%
3) The new company acquires the assets of his company & continues to trade
Is this a good option - any other suggestions?
We have considered buying the assets of the company & rolling it into our company. The problem is that the business relies heavily on the current owner so we need to keep him involved. We have considered offering him the opportunity to become a minority shareholder after a period of time but we really do not want to give up any shares.
I have come up with what I think is good compromise:
1) His company winds up
2) We set up a new company with my company holding 60% of shares & he has 40%
3) The new company acquires the assets of his company & continues to trade
Is this a good option - any other suggestions?
