Profit Splits to Pay back an Investor

***New Video Alert!
Charan wants to bring in an investor to help buy a business.
The investor wants their money back in 2 years.
So, how much of the profits should he commit to repayment of this investment?
Watch this week’s video to see all the red flags this question seems to reveal: • Profit Splits to Pay b...
Cheers
See you over on KZbin
David C Barnett
Sam Rosatti Video I mentioned: • Investor Perspective
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#smallbusiness #mergersandacquisitions #smallbiz #entrepreneurship #entrepreneur #buyabusiness #investor #profitsplit #dividends #distributions

[@no.limit.services]

Definitely timing is perfect! You answered and reaffirmed one of my major questions, I need to get a CPA

[@DavidCBarnett]

You got this!

[@ptrdnls]

This is perfect timing. Thank you. I’m in the process of acquiring a business and initially I was the cash investor only. Some things have changed so now I’ll be working as CEO as well as cash investor. Should I get a salary? How do I get into your program?

[@DavidCBarnett]

Go to www.BusinessBuyerAdvantage.com to learn about how I help people buy businesses. Other courses and programs can all be found at my blog www.DavidCBarnett.com

[@davidmuse6578]

I thought exactly the same thing, 70/30 of what? He couldn’t have meant shares of ownership because shares would be static, not variable. It should be shares of ownership though, right? That’s what payouts of dividends would be based on. Not a floating adjustable percentage connected to EBITDA.

[@DavidCBarnett]

Yes. Many people stumble into these things without a framework for understanding the differences between debt, equity and how future cash flows will be distributed or how different arrangements will change over time. Thankfully we have the internet now and people can go learn more easily.