Share Sales and Purchase

When you sell equity in your business, you are essentially divesting a portion of ownership to another party. This can be done for a range of reasons, such as raising capital or introducing a new partner. Before beginning the process, it's important to comprehend what implications it may have on the company's operation and structure.

A few key points to keep in mind when selling equity include that equity is usually sold for money but can also be exchanged for other assets like property or another business. The amount received will depend on the value of the business plus the percentage of ownership being sold. Additionally, selling equity will reduce one's stake in the company - e.g., if 20% is sold, then 80% remains owned by you. Furthermore, when you sell equity, you may no longer have sole control over decision-making in the company since new shareholders could now have a say. It is therefore essential to get legal advice before circulating any agreements so that your interests remain protected and that the deal is fair

Overall, selling equity can be a great way to raise capital or accept new partners without entirely relinquishing control over your business - provided thoughtful planning and consideration goes into each step of the process.