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I need help with answer about making and investment in a

Customer Question
small company as to what...
I need help with answer about making and investment in a small company as to what I should expect equity wise from that investment in comparison to what I am putting up?
Submitted: 1 year ago.Category: Business Law
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6/8/2016
Business Lawyer: Gerald, Esq, Lawyer replied 1 year ago
Gerald, Esq
Gerald, Esq, Lawyer
Category: Business Law
Satisfied Customers: 4,598
Experience: Over 30 years of experience
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Hello,

Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

First you need to get a valuation of the company. One way to value a company is based on revenues of the company. You need to see the books and find out what the annual revenues are. Once you know what annual revenues are youcan base your equity position demand on the ration of your investment to the vauation.

For example if the valuation of the company is $100,000.00 and you are investng $10,000.00 then you want a 10% position.

There are other valuation methids as well, for example you can base the valuation on the value of asses held or you can use more than one method and take an average. But in any case you need to know the value of the company in order to ascertain what equity position you are going to demand.

I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I am generally unavailable Friday evening through Sunday.

I hope the information I have provided is useful to you and that I have earned a positive rating from you. It costs you nothing extra, and is the only way I get credit for my attempt to assist you.

If you are dissatisfied with my response PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you and only ask the same from you.

Good luck,

Please note: Information given is not legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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