I work at a privately owned business that sells cell phones. Its just me and the owner that work here and hes 100% owner of the corporation, a couple of his buddies have died recently and he offered me 49% of the company incase nething happened to him, what i was curious about is would i be held accountable for any debts or past debts that he might have, were doing pretty good now, 2nd in the country for private dealers, but about 6 months ago he had to file bankruptcy on the old corporation and owes like 200k but i believe it is his personal and has no ties to this new corporation. Part of the reason i think he offered it is because the lawyer said he cannot file bankruptcy if he is 100% shareholder of another corporation. I do trust him, but what do you guys think should i take 49% or no?
need some advice
- Thread starter BossHogg
- Start date
You said the B word. No way in hell brother. Stay away ...
sounds like he's preparing for a major slowdown and doesn't want to take the hit alone
This one is easy. Hire an Attorney and a CPA (maybe even a qualified Commercial Real Estate Broker) to review his proposal, profit and loss statement, FF&E; then make an informed decision. I’m buying a business right now and have received invaluable consulting info from these folks.
What Fish says. Do the due diligence. Tell him he is going to have to open his books to you, etc, etc.
when you say he doesnt want to take the hit alone, what do you mean hit? i dont really have the funds to hire a lawyer or cpa, i know exactly how much money goes in the business and how much it costs to run the place, i just wanted to know if there are any strings attached to owning 49% of the corporation?
people are telling you the strings that could be involved... sounds like you already made up your mind though
get an atty to merge you in.
the fact he has claimed bankruptcy and THEN asked you to go in 49% with the business, in case anything happens, you get stuck with 100% of fail.
100% of fail, lets say i sign the papers and the business closes tmw what do i lose or what could i lose? i will not be putting any money of mine into the business? he filed bankruptcy maybe 6-7 months ago, what can i get stuck with, the lease on the building he rents? the equipment account with the cell company? we have no loans the only debt the corp has right now is the money we owe for equipment 10k but a monthly check is 15-20k. would i be responsible for the equipment account be a 49% shareholder?
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