No, it would not. That would be determined by the debenture agreement that you reach with investors. Further, you would most likely want to structure it as raising funds for a part of the larger business, with separate ownership and capital tables. There are a number of ways to structure it so that it can work out. I see companies creating separate entities for raising funds for specific projects all the time. The problem you have is if the money flowed into this company, as he'd have control over it.
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Submitted 338 days ago...
Merger, Business Plan & Taking money from Investors
Hi there,
I have a business plan in the Solar Feild and I sub contract work out to an Electrician who wants to merge with my company if I put his company name in my business plan in order to get investors (friends of his) to give us $10 Million to start another aspect of his Electric company, which would be my company's business plan. I'm wondering if I put his name of the business plan stating that his company will manage mine that it would give him complete rights over the monies recieved?
Thanks,
Arian Reyes - solar.solace@yahoo.com & 954-600-5958 Cell
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