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Buying part of an existing businessQuestion A company that has asked me to become president for has offered to sell me 50% of the stock. Should I consider this?
Answer First, owning 50% of the stock in any business is problematic, because no one has controlling interest.
Here are a few other issues for you to consider before taking this step: 1. Is this business worth the asking price? 2. What are your salary arrangements going to be? 3. What happens if the employment relationship doesn't work out? 4. If you wind up with the rest of the stock, will you get a Non-Compete Agreement from the seller? 5. Do you have first right of refusal for the other shares? Be sure to consult with a competent attorney and CPA before taking this step. 
Brain Trust contributor:
Author of Strategies for Successfully Buying and Selling a Business and Preparing Your Business for Sale
Related Categories: Business Buying And Selling, Negotiating
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