Hi, Hope this is in the right forum.
I am part of a small 3 person company (including myself!) that is growing like crazy.
One of the founding partners cannot deal with any risk or liabilities and wants out. The remaining partner and I are trying to hash out a buyout deal with her.
The main sticking point is that she wants 2% of sales for the next year. We are offering 4% of revenue after costs.
I need some verbiage (story problems) to help explain to her why her 2% of sales demand is bad for the company.
Background: this is a generous offer, because the 2 partners are brother and sister. So far, it has been amiable, but this is the point we cannot seem to explain to her. Also, I barely have a grasp on this myself...I am the production manager, not the great business mind behind it all. Also, for the last 2 years, we netted about $20K, so...not a ton of cash here!
All help is appreciated.
I am part of a small 3 person company (including myself!) that is growing like crazy.
One of the founding partners cannot deal with any risk or liabilities and wants out. The remaining partner and I are trying to hash out a buyout deal with her.
The main sticking point is that she wants 2% of sales for the next year. We are offering 4% of revenue after costs.
I need some verbiage (story problems) to help explain to her why her 2% of sales demand is bad for the company.
Background: this is a generous offer, because the 2 partners are brother and sister. So far, it has been amiable, but this is the point we cannot seem to explain to her. Also, I barely have a grasp on this myself...I am the production manager, not the great business mind behind it all. Also, for the last 2 years, we netted about $20K, so...not a ton of cash here!
All help is appreciated.
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