When is a business investment considered to be substantial?

Posted on Tuesday, February 2nd, 2010 at 3:00 am    

Businesses invest in other businesses for a number of reasons. In many cases, the investment is a financing decision to strengthen a company's portfolio.

In other cases, a business will make a substantial investment to gain significant influence over another company. With this influence, the company will have sway over a number of key business decisions. 

When a company has this type of influence, it will often need classify the investment as an equity investment. For such investments, structuring the contracts can often be critical to a business. 

If your business is considering making a significant investment in another company, contact the Iowa business investment attorneys of LaMarca Law Group, P.C., at (877) 327-2600. 


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