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.