Larger companies yes. And not subject to FICA. Everybody should be paying
themselves some directors fees.
-----Original Message-----
From: Jay Weekley
Sent: Wednesday, April 06, 2016 3:04 PM
To: [email protected]
Subject: Re: [AFMUG] Taking some off the table
Directors fees. I like that. Is that a common practice?
Chuck McCown wrote:
Do you get a seat on the board? Directors fees?
-----Original Message----- From: Travis Johnson Sent: Wednesday, April 06,
2016 2:46 PM To: [email protected] Subject: [AFMUG] Taking some off the table
Hi,
I'd love to hear some thoughts about when is a good time to take some
money off the table. I know this is a very diverse group and sometimes the
insight here is something you can't get anywhere else. LOL
I invested in a startup company 27 months ago. When I invested, the
company was valued at $1M and I owned 10%. Over the course of time, the
company has taken a few other investments along the way, so I now own
8.27%. The company is now valued at $18M and several private equity funds
have contacted the CEO about buying "secondary" shares of the company. So,
I have the option to "take some off the table".
The company is growing amazingly fast... we just received an offer from
one of the top investment companies in the country that they would invest
up to $25M right now.
So, the question is: When is a good time to sell some shares (even just to
get the original investment back)??
Travis
