Share of profit from shared investment?

viciam · 10 December 2013

Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: $1000
Friend: $2000

Total investment: $3000

Price goes up and we see a 50% return: Profit $1500

How would I work out how much I get of that profit and how much my friend gets?

Thanks in advance

prawn_86 · 10 December 2013

Really??

1/3 = 0.3333
0.3333 * 1500 = 500

tech/a · 10 December 2013

viciam said:
Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: $1000
Friend: $2000

Total investment: $3000

Price goes up and we see a 50% return: Profit $1500

How would I work out how much I get of that profit and how much my friend gets?

Thanks in advance

Id be working out how your going to handle loss more than profit.
But in answer.
Its something you need to work out between you--in writing and before you go into it.
Same with losses.

A shelf Company to set up would be $1-1.5K.
Then you'd have to set up the tax side of it.

For $3k Id be handling it as individuals.

- - - Updated - - -

prawn_86 said:
Really??

1/3 = 0.3333
0.3333 * 1500 = 500

I think he's alluding to his expertise being seen as an advantage.
That---is negotiable.

ROE · 10 December 2013

viciam said:
Hi guys,

If me and a friend want to put in money together to put in a company how would we work out our share on the possible gain?

Me: $1000
Friend: $2000

Total investment: $3000

Price goes up and we see a 50% return: Profit $1500

How would I work out how much I get of that profit and how much my friend gets?

Thanks in advance

Can't work out simple profit sharing maths - and you want to trade
With 3k? You end up paying it all in fee

burglar · 10 December 2013

viciam said:
... How would I work out how much I get of that profit and how much my friend gets?

Thanks in advance

If my friend could not get his idea off the ground with $2k, I would claim to have leverage over him.
I would be demanding the first three years profit.

He would probably retaliate by hiring a creative accountant to ensure that first three years were not profitable.

It's not a simple mathematical question!?

Hodgie · 10 December 2013

burglar said:
If my friend could not get his idea off the ground with $2k, I would claim to have leverage over him.
I would be demanding the first three years profit.

He would probably retaliate by hiring a creative accountant to ensure that first three years were not profitable.

It's not a simple mathematical question!?

I think it was a more simplistic question and people are reading too much into it.

I may be misinterpreting but I assumed that he just means put the 3 grand into a company, as in purchase shares in a listed company not actually start his own company.

If this is correct then refer back to Prawn's response.

Share of profit from shared investment?

viciam

prawn_86

Mod: Call me Dendrobranchiata

tech/a

No Ordinary Duck

ROE

burglar

Hodgie

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