Private Investment Hesitation
I've found this opportunity to buy some equity in a fast-growing small business with a proven business model (I worked for the owner in college and did the number).
With the fund I have, I would be able to buy up to 40% of a business that generates 35% net income per year and rapidly expanding. The only problem I have is that the owner insisted my equity would be non-voting, and he does have some problem with the operation and capital expenditure that I want to address. Furthermore, he seems to be disinterested in keeping his accounting and taxes efficient and still think he can do it all.
Did any of the members' have had experience with these kinds of investments? Is there any chance to persuade this type of founder to receive some input to improve his own business?
Hi HighlyLeveredCat, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
Hope that helps.
Non voting is definitely a problem. Also seems like this guy doesn't care about your input whatsoever....
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