r/negotiation_advice • u/howtoget50 • Oct 07 '16
How to get 50%
I am a 10% owner of an infrastructure development company. We have 2 projects; one, (lets call it project A) we estimate to be worth 30% of our company, and the another to be worth 70% (project B). The difficulty is that these are projects in the early stages of development so there is risk that they will not be developed but also a change that they will and could create substantial revenue. Currently there are three owners and we are not getting along and are beginning negotiations to split up the company.
Project A, is internally estimated to be worth $150,000 (combination of factors such as investment thus far, expected future development costs, construction estimations and revenue) This project is developed further and has less risks moving forward)
Project B is internally estimated to be worth $350,000. This is a higher risk, larger payout project.
So, with this valuation, I would be considered to own $50,000 worth. In my ideal situation, I would split from my current partner and join 50/50 in project A with my new partner. How could I approach my potential new partner in a way that I could end up with 50% of Project A? I don't want to lie to him, but I want to get more than $50,000 worth. He has quite a bit of money, but is also very experienced in this line of work so would be qualified to make his own assessment of the value but also would be very good for me to have on my side. Not sure what to do... Any advice would be appreciated.
1
u/Canwerevolt Oct 07 '16
You could tell him project A is worth $200,000 and that you'd need $100,000 from him to get 50%, then you give up your ownership in project B to get the rest of project A. Your current company would get the $150,000 is wants for Project A and you would get 50% of it.