Question about family business?
My cousin has a farm that is worth $100k (total assets-total liabilities).
I want to invest $10,000 (10%) in it in order to gain a controlling interest.
Do I need an accountant to do that?
I am not going to work in the farm, I am only going to invest money in it.
The farm makes a net profit of $30,000 a year.
How much profit should I get? 10% ($3,000) or less?
If the ownership is not being transferred to you over time then you should get a return on your investment based on what you invest, if he’s going to give you 10% return on your investment then it would be $1,000 per year.
Recommended Reading
- Farm Accountants Serving America's Heartland
- Managing the Farm: The Top 10 Per Cent Is Timing
- The Divine Comedy – Songs Of Love and The Plough – Tabernacle London 12/05/2010
- The Perfect Partnership, Farm Accountants and Farm Accounting Software
- Business Strategic Development For Farm Accountants
If the ownership is not being transferred to you over time then you should get a return on your investment based on what you invest, if he’s going to give you 10% return on your investment then it would be $1,000 per year.
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