New Posts For Thread: Equity investing in the company you work forhttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-forGot a meeting soon with the CEO of a medium size, family owned, construction related company I work for. I have (as well as other key staff) been invited to invest a minimum of 50k to buy equity in the company. The company turnover is around £25m aI'm an accountant and management consultant (or rather was until I discovered Betfair). My advice is don't unless ... In my younger and more ambitious greasy pole days I worked for a very blue chip uk accountancy and management consultancy firm. Thttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541667159#541667159I'm an accountant and management consultant (or rather was until I discovered Betfair). My advice is don't unless ... In my younger and more ambitious greasy pole days I worked for a very blue chip uk accountancy and management consultancy firm. TWed, 01 Oct 2014 06:42:01 -0500You mention turnover and the value of current orders on the books with potentially more orders.As others have said, what equity do you get for 50k.What is the profit or loss for the last 5 years.As a share holder you are still likely to be in a minorhttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541664549#541664549You mention turnover and the value of current orders on the books with potentially more orders.As others have said, what equity do you get for 50k.What is the profit or loss for the last 5 years.As a share holder you are still likely to be in a minorTue, 30 Sep 2014 21:32:26 -0500This must be a wind up as op doesn't even state the percentage of the company his £50 k will buy.If by some chance this is a genuine enquiry my advice would be to go to a local chartered accountant and ask him to value the company for you for a fixehttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541659311#541659311This must be a wind up as op doesn't even state the percentage of the company his £50 k will buy.If by some chance this is a genuine enquiry my advice would be to go to a local chartered accountant and ask him to value the company for you for a fixeTue, 30 Sep 2014 12:30:04 -0500If your buying I amhttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657755#541657755If your buying I amTue, 30 Sep 2014 10:39:28 -0500is crisp Deborah Meaden ?https://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657751#541657751is crisp Deborah Meaden ?Tue, 30 Sep 2014 10:38:50 -0500Thx for the advice Crisp & Ozy. I will post an update after the initial chat.https://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657645#541657645Thx for the advice Crisp & Ozy. I will post an update after the initial chat.Tue, 30 Sep 2014 10:28:29 -0500Depends on the company circumstances however generally you are right. I would never sell equity in my company if I could get a decent priced loan if I needed finance.In this case with it being construction they may have exhausted all their reasonablyhttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657571#541657571Depends on the company circumstances however generally you are right. I would never sell equity in my company if I could get a decent priced loan if I needed finance.In this case with it being construction they may have exhausted all their reasonablyTue, 30 Sep 2014 10:21:07 -0500It will be easier to give advice, Stillskint, when we have answers to the questions you have outlined to ask.https://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657555#541657555It will be easier to give advice, Stillskint, when we have answers to the questions you have outlined to ask.Tue, 30 Sep 2014 10:19:21 -0500Responding to a point made by Crisp;It is a bit of a misnomer to think of equity as being cheaper financing than debt. The opposite is true, equity is a higher risk investment therefore demands higher returns. Also debt repayments are tax deductiblhttps://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657539#541657539Responding to a point made by Crisp;It is a bit of a misnomer to think of equity as being cheaper financing than debt. The opposite is true, equity is a higher risk investment therefore demands higher returns. Also debt repayments are tax deductiblTue, 30 Sep 2014 10:17:25 -0500Normally you get the money back by selling the shares. They might do shares where the company has redemption rights meaning that they can buy them back at a fixed price and fixed date which would make them more like a loan.https://community.betfair.com/chit_chat/go/thread/view/94038/30358131/equity-investing-in-the-company-you-work-for?post_id=541657537#541657537Normally you get the money back by selling the shares. They might do shares where the company has redemption rights meaning that they can buy them back at a fixed price and fixed date which would make them more like a loan.Tue, 30 Sep 2014 10:17:21 -0500