Re: Business Value / Selling % a good move or not?
I understand that it's hard to give a perfect answer with only some of the information about the situation. I appreciate the attempt though [img]/images/graemlins/smile.gif[/img]
- It is a privately held company
- The company has a service contract with the government (Would rather not get into more detail then that on here)
- Including my 8% half of the company is owned by people in my family. The 8% was basically a gift to me. The other half of the company is owned by someone who my family has had a working relationship with and who is knowledgeable in the field.
- I don't have the ability to make any decisions, but I am able to influence the decision making. Since the ownership base is small and trusted, the decision making isn't an issue for me.
The 10k would be a large percentage of my net worth.(I'm 24 years old) I have only a small amount in an Retirement fund (RRSP) and a few thousand in the bank. I also am buying a new home for 180k which I've put down 15% on already.
I'm starting to be in a comfortable position, but my 8% does account for a huge % of my effective net worth. Even though the company is not much of a risk to not be at least as profitable as it is now, It might be a good idea for me to diversify my portfolio. (Aka create a portfolio)
- The option to sell might could close up, but it could also become greater if other parties do indeed come forward. (Possibility)
- My paycheque currently is completely outside of this company
Thanks for some actual figures DesertCat, I was estimating the general depreciation of the money in 6 years, but it's helpful to have a more black & white analysis.
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