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Can I sell my equity in this digital company?

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  • 03-06-2018 11:51am
    #1
    seabadger
    Registered Users Posts: 1 ✭


    I started a website with this other guy, I split ways with him after about a year. The company is growing really fast and becoming really successful. The guy I started it with offered to buy my equity for 30k. I most definitely want to take that offer but he hasn't responded since I told him I'll take it.

    Is it possible for me to find a third party investor who will buy my equity in this company? Anyone who does a little bit of research will see that this equity is gonna multiply vastly over the next few years. It went up from nothing to 30k in 1.5 years. I don't know much at all about business, I was pretty much the idea machine and developer in this company, since I'm so broke I wanna sell this equity now, I'd really appreciate if anyone can point me in the right direction.
    Tagged:


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    #2
    Buttercake
    Registered Users Posts: 539 ✭✭✭Buttercake


    seabadger wrote: »
    The company is growing really fast and becoming really successful. The guy I started it with offered to buy my equity for 30k.

    What is the company setup? is a Partnership? Ltd,? DAC? or CLG?


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    #3
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    If it is a private company then there is a restriction on the sale of the shares to a third party. You will need to get permission from the existing shareholders first otherwise they will not register the transfer.

    Check the company constitution to see if it says anything.

    Dbran


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    #4
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    dbran wrote: »
    If it is a private company then there is a restriction on the sale of the shares to a third party. You will need to get permission from the existing shareholders first otherwise they will not register the transfer.

    Check the company constitution to see if it says anything.

    Dbran

    I disagree. Shareholders have the ability to transfer their shares to existing shareholders or third parties. There is no restriction unless there is a process limiting disposal specifically defined in either the Constitution or a shareholders’ agreement. (E.g. shares must first be offered to the other shareholders.)

    The directors have a right to refuse any transfer of shares only if the transfer is not in the best interests of the company or if it is oppressing any shareholder rights. That would not appear to be the case in this instance. In this case the OP has been made an offer to purchase by the other single shareholder (OS), OP has indicated his assent so s/he should now write to OS asking him to complete the transaction within a defined timeframe and stating that unless the deal proceeds the shares will be offered for sale elsewhere.

    (Of course the OP is a one-post wonder, we have no idea of how the €30k valuation was arrived at, or if a shareholders agreement is in place and what process was used to value a venture that is “gonna multiply vastly over the next few years.”)


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    #5
    judeboy101
    Banned (with Prison Access) Posts: 3,246 ✭✭✭judeboy101


    Why sell? unless you desperately need the money? If the company going brill it could be worth serious de niro in a few years.


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    #6
    TheValeyard
    Registered Users Posts: 12,249 ✭✭✭✭TheValeyard


    judeboy101 wrote: »
    Why sell? unless you desperately need the money? If the company going brill it could be worth serious de niro in a few years.

    Yeah, thinking long-term could it be more valuable to hold onto?

    Fcuk Putin. Glory to Ukraine!



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    #7
    PokeHerKing
    Registered Users Posts: 4,298 ✭✭✭PokeHerKing


    30k will barely buy you a decent motor these days. Without knowing anything about the company or the tech involved.

    A cursory glamce at the tech industry and the outrageous valuations being put on companies people started in their bedrooms, I would not be selling.

    I could live with losing 30k. I don't think I'd get over losing a million or more.


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