64

Private companies don't have liquid secondary markets. There are no identified buyers of your shares. The next time there's a fund raising round at the company they will include some or all of your shares in the transaction at whatever valuation is being used for the transaction. What you need to calculate the value of the shares is a buyer for your ...


54

Things to look for: They contacted you first. You always have to ask yourself how they came by your contact. If they have a really good product, they would not have to SPAM to sell it. Clarification, due to some comments: By "they contacted you first" I mean you do not know them, it is not something forwarded by your bank/broker etc. and you never purchased ...


37

No, private companies have no obligation to help you sell their shares. It may not be legal, but there is very little you can do short of suing the company. Great article about this from the Wall Street Journal here. You could approach the company and ask if they are interested in buying back shares, or if they know anybody who is interested in buying. But ...


24

The company going public is probably your best chance of being able to sell your shares. Therefore, your first job should probably be to try and see if there are any indicators that this might still happen: scour their website and financial news websites for anything that might indicate that this is still a possibility. If you do still have contacts within ...


19

I have received non-scam emails containing an offer to buy my shares, but (1) they were from the bank that manages my shares, and (2) it was in reaction to a public offer for those shares. So it was a higher price than I paid, but that is normal in a take-over bid. Further signs of a non-scam bid: there is a public, legal document describing the offer, and ...


17

There are two main types of pensions to consider in answering your question: (1) Defined Benefit pension plan. This type is the 'traditional' pension plan. It means that when you retire, you get a benefit based on, generally, years of service & salary over that period. Even if the market fails, the company still has a legal obligation to pay out the ...


16

The answer to this question is related to another question: How would I invest in Uber? Given that Uber is a privately-held company, the average investor cannot directly buy stock. However, there are some indirect methods that you can use to invest in Uber, and as a result, it is also possible to indirectly short Uber. One method is to invest in (or ...


11

Yes, but only if they're looking for investors. You would need to contact them directly. Unless you're looking to invest a significant sum, they may not be interested in speaking with you. (Think at least 6 figures, maybe 7 depending on their size and needs). This is otherwise known as being a Venture Capitalist. Some companies don't want additional ...


9

Ask your accountant for a profit and loss statement for the current year. What you're showing us is is a balance sheet. You can't infer taxes from a balance sheet but you can from a profit and loss statement.


9

In general, shares in a private company aren't worth anything. (Unless the company is paying dividends or they give voting privileges or something.) There's no good way to convert them into cash unless the company is buying.


7

would this be a loan to my company? Yes, or alternatively the company could issue out some new shares increasing your holding in the company over your partners. Another alternative would be that each partner ponies up an additional $5,000 in capital and the equity split remains the same. If so, what parameters can I use to determine a reasonable period ...


6

No. Some profits could (and should) go to retained earnings. You will only received income when it is distributed to shareholders. It happens when the owners decide it should happen. Keep in mind that in the case you cite, $100 profit is made and held as retained earnings, the company's value increases by that $100. Your net worth would increase by $...


6

The key here is that you are defacto running your own company no matter if you acknowledge it or not. In the end these questions have the goal of deciding if you can and will repay the loan. Presumably you filed taxes on your income. These can be shown to the loan officer as proof you have the ability to repay your loan. Running your freelancing as a ...


5

No, they cannot force you to sell simply because of your status. When companies go private though, they frequently invoke "drag along" clauses in shareholder agreements which may specify that in the event of such a sale, everyone must sell.


5

If X initially has full ownership and control of the company, then it is X's choice what is done with the company's stock and assets. There may be tax and accounting rules and consequences, but fundamentally X is allowed to move personal funds into the company (investing their own savings) or take funds out of the company (paying themselves salary or ...


5

Pay someone a fee to borrow their private Uber shares, then sell those private shares to someone else, then find someone else you can buy their private shares from for less than the net of the proceeds you made selling the borrowed shares you sold plus the fees you've paid to the first person and return your newly purchased shares back to the person you ...


5

This answer applies only to corporation tax, not income tax. Different things, income tax is much higher. 12.5% is the low rate for corporation tax. The standard rate is 25%. Or if you're Apple 0%. Like many countries Ireland will only consider you eligible for the low rate of corporation tax if you (your Irish company) can demonstrably prove yourself ...


5

No it's not reasonable. The larger party apparently thinks they paid a premium for their 75% of shares that they're apparently not willing to pay for the rest of the shares. The question isn't what's reasonable. The selling party needs to figure out what they're willing to accept (or what the shares they're selling are worth). You can only have a sale ...


4

Another way to do this is go to work for that company. Companies in this situation normally offer low pay, long hours, and stock options. Given a sufficient grant, it could be all very lucrative or worthless. Even if you have no electronics background you might be able to work in a different capacity. There were secretaries at various companies that ...


4

How can I get quarterly information about private companies? Ask the owner(s). Unelss you have a relationship and they're interested in helping you, they will likely tell you no as there's no compelling reason for them to do so. It's a huge benefit of not taking a company public.


4

First, being delisted is not the same thing as going private. If a stock is delisted from its exchange, it can still trade publicly "over the counter" or on the "pink sheets", and you do not need to be accredited to hold such shares. As TripeHound commented, "going private" normally requires buying all outstanding shares, and this can be done because a ...


4

It depends. If the business is scalable, you can try starting on a small scale. A colleague of mine did that, and last I heard, their business is now booming. Both spouses were salaried employees at the time, and one spouse continued to be a salaried employee. So it's possible but, from my observations, at least, it's the exception rather than the norm. ...


4

Pension funds are invested, mostly in bonds and equities, and the interest and dividends are added to the funds, which (in the case of defined-benefit pensions) would not be large enough to meet their obligations without the income and capital growth. The money remains in the pension fund and can't be used by the company (except that if the pension fund runs ...


4

One ESPP I am familiar with also offers a 15% discount on stock and a max of 10% of salary. Deductions are taken from each paycheck and stock purchases are made twice a year. It also has the feature that the 15% discount is applied to the lower of the stock price at the beginning or end of the period. For contributions made at the beginning of a period, ...


4

With vehicle expenses for business you can opt to take actual expenses or a standardized rate per mile (currently $0.58/mile). If you take actual expenses, you'd typically depreciate the vehicle cost over 5 years, but there are several depreciation options. The options front-load the deprecation expense to varying degrees, it can range from taking the ...


3

Is the 1099 going to be generated by the escrow company, and if so are they going to show the transaction date of the conversion? If both of the answers to these questions are yes, then you can choose the date that you are taxed on the gains, and place all of the income into 2018. Contact the escrow company and find that out, then attempt to do a realistic ...


3

Each way you go is a little bit of a gamble. Owning equity in the company is best in situations where you can trade and sell that equity, or where the dilution of your royalty product would affect your returns, or if you can maintain a certain equity stake without working at the company or if you can hold out on taking equity to reinvest profits for the ...


3

This is a very hard and complex problem without one single answer. Companies are generally valued on a complex combination of current assets and likely future cash flows, the latter of which is exceptionally hard to calculate accurately. Certainly on the numbers above in terms of growth rate/margin that looks a great business, if you are growing at that rate ...


3

In the US one has to be accredited investor to buy stock in a private company. That's not correct. The private company is only allowed to solicit investment from accredited investors. Non accredited investors are not barred from investing in companies and many many many many non-accredited folks are invested in other people's small businesses.


3

How do i go about finding if they have stock/shares to invest in? You can visit the company's website and see if there is an "investor relations" section. Or check on a major brokerage website. some websites like "Robinhood" does not have all possible companies that sell stocks (they add more over time). So use a better website. Preferably use your ...


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