I have a power company, AE.. This company's goal is to partner with manufacturing suppliers and get financial loans/investment for Company AB. Company AE has pre-operating costs of 5million already. Company ZT (who is a power company too) wants to invest in AE now. Can I assume that my 5Million expenses 2 years ago be viewed at 100M or 500M today? Also, if I want Company ZT to only own 10%, can i ask him to pay 10million (10% of the 100million)?
Answer
As a Franchise Attorney I can say don't assume anything. And the best deal is the one both parties are satisfied with. There are too many unknown factors here. You really need to consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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