This area is completely new to me so the questions are going to be very basic!! I work for a Limited Company, this company is likely to be sold in the next 12 months or so. I am interested in buying a share of the company.
I am going to get some professional advice on this - but I am just using this forum to get some ideas to start the ball rolling. Any advice would be appreciated.
Now to the questions....
How does one go about getting a small company valued ?
How do banks loan money for this type of scenario? With a mortgage the bank hold the deeds until you have your house paid for. Does something similar happen with the company, or do I have to use my home as collateral ?
What type of interest rates / terms do these type of loans incur ?
If, for example, a €250,000 loan buys me 25% of the company. The repayments on this loan (10 years / 8% ?) will be in the region of €37,000 per annum. Am I then entitled to 25% of the profits of the company ? How are these profits paid - through PAYE ?
Is the interest on the loan tax deductable ? (interest of €20k in first year of loan)
I have 101 other questions but these basic ones will do me for now!!
Many thanks
I am going to get some professional advice on this - but I am just using this forum to get some ideas to start the ball rolling. Any advice would be appreciated.
Now to the questions....
How does one go about getting a small company valued ?
How do banks loan money for this type of scenario? With a mortgage the bank hold the deeds until you have your house paid for. Does something similar happen with the company, or do I have to use my home as collateral ?
What type of interest rates / terms do these type of loans incur ?
If, for example, a €250,000 loan buys me 25% of the company. The repayments on this loan (10 years / 8% ?) will be in the region of €37,000 per annum. Am I then entitled to 25% of the profits of the company ? How are these profits paid - through PAYE ?
Is the interest on the loan tax deductable ? (interest of €20k in first year of loan)
I have 101 other questions but these basic ones will do me for now!!
Many thanks