Texas
A partner and I are considering starting a new business. We have had conversations with a third investor who currently owns a services corporation that compliments the services we would be providing. There's much value in having a close relationship, if possible, with this third investor as both corporations would benefit incredibly.
What would be the perfect set up for these two businesses to maintain close relationships? Subsidiary? Completely separate entity?
I define close relationships as being able to share back office services (HR/Financials/Procurement) and also leverage the fact that the existing business is in the consulting field and the new business would be executing the work (day in/day out) that the consulting firm develops. As an example, one designs it, the other build it.
A division of the existing corporation is out of the question as my partner and I want ownership of the new venture and we are pretty sure that the third investor would not be willing to give up a % of ownership from his current business.
A partner and I are considering starting a new business. We have had conversations with a third investor who currently owns a services corporation that compliments the services we would be providing. There's much value in having a close relationship, if possible, with this third investor as both corporations would benefit incredibly.
What would be the perfect set up for these two businesses to maintain close relationships? Subsidiary? Completely separate entity?
I define close relationships as being able to share back office services (HR/Financials/Procurement) and also leverage the fact that the existing business is in the consulting field and the new business would be executing the work (day in/day out) that the consulting firm develops. As an example, one designs it, the other build it.
A division of the existing corporation is out of the question as my partner and I want ownership of the new venture and we are pretty sure that the third investor would not be willing to give up a % of ownership from his current business.
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