Has anyone tried selling a partial ownership in their business? How did it work out? How did you structure the deal?

We tried to sell a partial ownership in our business but we could never agree on a price and how the net income would be split between working owners and non working owners because there should be a difference - the working owners are taking the business risk

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We never have but I could imagine the complications that you would have. I think it would be very difficult especially if the person you wanted to invest also came to work in the businesses because then you have the issues as to whether or not you could work with them, whether they will put in the hours etc

The best thing you could do is value the business based upon EBITDA or some other multiple - benchmarked against some other companies of course. That would determine the share worth and then you need to determine ongoing revenue splits between the two parties which may not be at the same percentage as the business ownership.

We tried it but I couldnt agree more with CCC it was a nightmare and we could never agree on a figure and at the end of our discussions it became quite testy I would avoid it if I was you

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