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Let's say I owe a company.

At the final state I want to be left with 1M cash for myself and 50 percent of the company.

The investor is not willing to buy shares and give me the money but only invest in the company.

I thought about selling my shares to a third person for one million cash after the first investment so I'll be left with 50% at the end and 1M.

How much percentage should I give the investor and for how much money, and how much should I sell to the third person and for how much money in order to be left with 1M and 50% of the company?

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    $\begingroup$ What do you mean when you say that the investor is not willing to buy shares, but only invest in the company? How is he investing in the company, if he's not buying shares? Is he giving the company a loan secured on its assets? $\endgroup$
    – 410 gone
    Commented Sep 28, 2018 at 21:19
  • $\begingroup$ I mean he want his money to go directly to the company account and not to the owner's personal account $\endgroup$
    – ronenfe
    Commented Sep 30, 2018 at 8:41

2 Answers 2

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Well basically it pretty easy to calculate:

A + B + C = X

A: 0.25X : 25% of the company for investors

B: 0.5X : 50% you want to be left with

C: 1M : The price for selling to third party

X: The value of the company that we would like to find

So in your case it's:

0.25X + 0.5X + 1M = X -> 0.25X = 1M -> X = 4

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The solution is as follows:

Y : Final worth of company.

X : Percentage of investment.

Y = 1000000 + YX% + Y50%

And the result is the following graph showing xy which is the amount the investors has to pay as a function of x which is the percentage they get.

https://www.desmos.com/calculator/ahftzqlgop

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