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About Kevin Bousquet
Expertise
I am risk consultant in the field of venture capital. I can answer questions on business start up, dealing with Venture Capital Consultants and the risks involved, due diligence and the due diligence check list, corporate research, reorganizing bad debt, dealing with creditors, raising private capital, factoring and collection issues.

If you are concerned about the risks of dealing with a Venture Capital firm or a Venture Capital Broker feel free to contact me.

I have a large cleint list of Venture Capital firms who retain me to consult on assessing the risks in investing in individuals or private companies seeking capital.

Experience

Education/Credentials
Law Enf Grad (honours)1986, Law/Legal Admin 1991, Certified Fraud Examiner (CFE), English, French, Japanese. Owner Corpa Investigation www.corpa.com since 1991. Advisory Member - Canadian Venture Capital Association.

During the Internet "dot com boom" my venture capital company, "Capital Unlimited" consulted with VC firms and those seeking capital across the globe. I assisted companies (primarly new start ups) in ways to raise capital safely when the banks had turned them down.

I assisted with business plans, incorporations, press releases, financing proposals, private placement memos, invoice factoring, collection issues, trademark issues, asset Protection/restructuring & reorganization of bad debt.

During the dot.com internet boom, my Venture Capital company Capital-Unlimited and website was purchased by Andrew J. Filipowski of DivineInterventures the previous owner of Platinum Ventures.

Platinum Ventures was well documented as being famous for the purchase by Computer Associates for 3.6 Billion the largest software transaction in history at the time of the begining of the Internet dot.com boom.

My investigation company was under a consulting contract for due diligence and with the Divine Interventures team.

My 17 year old company, The Corpa Group continues to work in the field of Venture Capital. We get in the middle of business deals to ensure the deal is safe with no surprises. We use the term "investigate before you invest" which can be seen on our site and blog.

The Corpa Group continues to lessen the risk of any business transactions in the field of Venture Captial.

I do not broker capital, invest in companies, nor do I offer investment advice so please don't ask questions in this area.


 
   

You are here:  Experts > Business > Small Business Information > Venture Capital & Stock > Startup Monies

Topic: Venture Capital & Stock



Expert: Kevin Bousquet
Date: 8/21/2008
Subject: Startup Monies

Question
I want to reopen a formerly successful jazz club that closed a year ago (create an LLC).  I don't have any capital myself - it is all being borrowed from an investor.
I need $100K to purchase the business, and $50K in startup.  I anticipate first year gross profit to be about $700K, as much as $1.2M in a couple years.
How do I determine his % ownership?  Do I pay him back monthly, or only when I sell the business in 5 years?  Or both?
Thanks, RJ

Answer
There are about a zillion ways you could structure a deal like this.  It will be up to you and the investor in a well drafted shareholder agreement. I don't know if the investor is having any active participation in the business so the two of you will have to determine how much ownership you are prepared to give up for the money that is being put up.    

$700K in the first year seems very high for a first year of revenue of a night club.  But I don't know much about this industry but if your going to pitch that kind of a figure to investors your investor may start to get nervous after a year if you don't come close to that figure.

You might want to get ideas from other night club owners and see how they have structured their deals with investors or at the very least find out what lawyer they used.

K.  

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