Steve: One of Our Contractors Wants Out of The Business and Has Offered Us Equity In Exchange for An Employment Contract. Is This A Good Deal?
Posted by steve on Apr 2, 2008
However, the approach to answering this question is the same as if you were acquiring a business. In summary - you need to complete the same level of due diligence you would complete in the purchase of a company. The due diligence includes the evaluation of the company’s financial strength, expected continuation of revenue and profit trends, how this business will be integrated with yours and most importantly, does your management team have the time and skills to integrate and manage this new business.
My answer is an overview. As discussed the first step is to obtain detailed information on business performance which goes way beyond standard financial statements and tax returns.
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Be Well and Prosper,
Steve Pohlit
Business Development Consulting
Steve Pohlit has more than 20 years experience running very large and medium sized companies. Steve consults with clients to design and implement processes that will deliver improved business performance for the long term. Learn more about the process of Increasing Profits by 30% or More In 90 Days or Less by visiting 10 Minute MBA or you can call 727-587-7871 and speak with Steve directly. Have a question? Click Here To Visit Ask The Consultant