Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by TAForObvReasons on Wednesday August 29, 2018 @03:59PM
(#17871362)
You are permitted to run the company your way when you are wildly successful and can raise money at obscene valuations (see Facebook). Otherwise it is a delicate dance with the investors.
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Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by jjeaff on Wednesday August 29, 2018 @04:33PM
(#17871709)
You can run your company however you please until you no longer have 51% voting control.
And don't think for a second that your investors won't do whatever the heck they please once they have controlling interest, up to and including kicking you out of your own company if it serves them better.
Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by JackFr on Wednesday August 29, 2018 @05:42PM
(#17872328)
> including kicking you out of your own company
kicking you out of their company
Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by robocat on Wednesday August 29, 2018 @05:12PM
(#17872098)
After the share buyback, has he undiluted his ownership from 45% to above 50%?
Re:We Spent $3.3M Buying Out Investors: Why and How We Did It
by btilly on Wednesday August 29, 2018 @06:41PM
(#17872714)
Not by my calculation.
Here is how I figured that. He had 45% of a company that was valued at $80 million in the buyback. That's $36 million. He paid back $3.3 million. That reduces the value of the company by $3.3 million and leaves his value untouched. So he now has 36/(80-3.3) = 0.46936... of the company, for around 47% < 50%.