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- Nov 4, 2003
Relatively young but myself and another employee, were approached by one of four owners to buy out another owner. Small business. Just trying to get a little info as it happened today.
Here is what I was told: To keep it simple, Lets say each owner makes $100k and holds an even 25% stake in the company. The 2 of us come in and offer 250k over 5 years and split his 25%. That would mean we would pay him half his salary of 50 k and get the remaining 50k to split, Which would essentially come from payroll and we wouldn't have to pay a lump sum or borrow anything to get the 25% ownership or pay him?
This is all dependent on him saying yes but the dude is ready to go. Not real number but tried to keep the digits round.
Thanks for any help. Will obviously consult with a lawyer but trying to gather a little info first.
Here is what I was told: To keep it simple, Lets say each owner makes $100k and holds an even 25% stake in the company. The 2 of us come in and offer 250k over 5 years and split his 25%. That would mean we would pay him half his salary of 50 k and get the remaining 50k to split, Which would essentially come from payroll and we wouldn't have to pay a lump sum or borrow anything to get the 25% ownership or pay him?
This is all dependent on him saying yes but the dude is ready to go. Not real number but tried to keep the digits round.
Thanks for any help. Will obviously consult with a lawyer but trying to gather a little info first.
