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Old 10-14-2011, 11:18 AM
 
1 posts, read 870 times
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I would like to invest in my family business which has the restriction that you have to be a family member to own stock. Very normal. I used to own stock but from a long ago divorce and other contributing factors, I needed to sell out my ownership. I still work in the business as a contracted marketing/sales agent for the business products. My older brothers that are 14-15 years older than myself are at retirement age and looking to have my niece be the new general manager as well as her father (my oldest brother) needing to look at how to handle dividing up his controling interest in the business. I have friends/customers that would financially back me in looking at the possibility of buying controlling interest. The biggest question I have is how can I set up an entity that my financial backers invest in while I use that money to personally buy stock in my family's business. What protections, returns, etc. can I offer them to be comfortable with the second hand access to the ownership which they are interested in helping provide. Or is there a way that I could be stated as a representative of a syndicate to be an owner of the family business. Hope this isn't too confusing, but lots of variables involved other than stated, but this is in general my asking of any advice on how I might set these relationships up to everyones liking.
Thanks for any help.
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Old 10-14-2011, 11:27 AM
 
Location: The Triad
34,088 posts, read 82,920,234 times
Reputation: 43660
Quote:
Originally Posted by cherryman View Post
I would like to invest in my family business...
I have friends/customers that would financially back me...

...how can I set up an entity that my financial backers invest in
while I use that money to personally buy stock in my family's business.
Assuming that the business won't tolerate any sort of encumbrance on the shares (I sure wouldn't if I were them)...
you're left with either personal notes or using some other property you may have for collateral.

The question then (well, the main Q) becomes about rates and term.
How long would it take for your shares to pay off their cost...

hth
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