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Company Structure

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  • 27-02-2012 3:09pm
    #1
    clairedavies
    Closed Accounts Posts: 16 ✭


    Dear Boards People!

    I currently have a company that needs some history behind it... I have interest from a very well established company and am looking to become a part of their company structure but as far as possible maintain current shareholding distribution etc.

    What would be the best way to do this? To form an official association with a long established company without giving away too much power?

    Thanks in advance for your help.


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    #2
    smeharg
    Registered Users Posts: 300 ✭✭smeharg


    I would imagine the power is probably in the hands of the other company, unless it needs you as much as you need it - but in different ways.

    Have you thought about a joint venture?


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    #3
    clairedavies
    Closed Accounts Posts: 16 ✭clairedavies


    Thanks. Unfortunately I think you might be right. They seem happy with 10% shareholding which I would easily give BUT I wonder will this look good enough in terms of my companies history etc? I suppose its hard to know...?


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    #4
    smeharg
    Registered Users Posts: 300 ✭✭smeharg


    If that's the case you need to evaluate what you'd be getting in return for 10% of your company and decide if it's worth it.

    If you're going to bring expertise and experience on board that will boost your presence in the market, and may be the difference between make or break, is 10% really that much?

    Make sure there's an exit strategy for the other party, and one that suits you. For example, you may just need a leg up to get you going. In which you might look at buying the other party out within a few years before the business really gets booming (an increases in value). On the other hand the other party may want to wait to maximise its investment.

    It's something you should really get proper advice on.


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