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-   -   Subsidiary or similar setup (https://www.askmehelpdesk.com/showthread.php?t=304726)

  • Jan 17, 2009, 06:27 AM
    corp_guy
    Subsidiary or similar setup
    Hi,
    My company is just 2 yrs old, and now I would like to expand my company's presence in major firms since I have great resources in my field and contacts to win businesses. But I am running into profile related (finance stability, tax returns, history etc.. ) questions and unable to move further. Now I am considering to engage with a large entity and leverage their background information to support me and grow my business. I was told subsidiary is one of the options but I have to give away majority stake in my company.

    I would like to know what are my options and also the simplest and best option without giving away a large share of my firm for my growth.

    Thanks in advance.
    Regards
  • Jan 17, 2009, 07:12 AM
    excon
    Hello guy:

    Actually, I don't understand ANYTHING you said.

    "Engaging a large entity and leveraging their background" actually means NOTHING. I also don't know what "profile related" questions are...

    You certainly can "engage" or hire or BE hired and/or otherwise DO business with this entity WITHOUT giving away ANYTHING...

    If, however, you need CAPITAL, and they're going to GIVE it to you in exchange for some of your business, then THAT'S understandable... Some form of merger MIGHT be in order. Or, if you HAVE capital but NO resources, and they do, then that too might be reasons for joining forces...

    But, you can join forces any number of different ways. You can do license agreements, franchise, partnership, or simply contract with them...

    I need to know what specifically you want from this firm, and what you're going to give up to get it.

    excon
  • Jan 17, 2009, 07:20 AM
    Fr_Chuck

    You can not "use" anothers firm finicial position unless they own a substantial interest in your company. You can contract with them on specific projects as a partner on that project only, where they act as a promisor.
    But you should be able to get a performance bonding to give the other companies a better feel.

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