Buying it forward
Apr. 8th, 2012 02:06 pmThis post in Business of Gaming Retail reminded me of another link I posted (... back in 2009 when I finally found it). Both are about alternative ways of going into or expanding business without going into debt.
This one is about ensuring the person you're buying out a passive income for the next several years instead of taking on debt to pay the whole value of their business up front. It's tied to the sales generated over that time so they could do better that what the business is currently valued at - they could also do worse and I expect many implementations might include some form of guaranteed minimum. But presumably if you are already successful and looking to expand you are doing something right.
This one is about ensuring the person you're buying out a passive income for the next several years instead of taking on debt to pay the whole value of their business up front. It's tied to the sales generated over that time so they could do better that what the business is currently valued at - they could also do worse and I expect many implementations might include some form of guaranteed minimum. But presumably if you are already successful and looking to expand you are doing something right.