Takeover

Wikipedia, the free, on-line encyclopedia says:

In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.

You may agree to give up a controlling share of your business in exchange for a large amount of capital from a funder. If so, you can find yourself out on your ear if the funder who bankrolled you decides he or she doesn't like what you're doing. He or she can take over your enterpreise, bring in their own management team, and basically fire the entrepreneur who took the initial risk and had the idea for the business in the first place.

You may not find this a problem to give up control of your business (After all, 20% of anything is more than 100% of nothing.). But tread carefully. Still, to many entrepreneurs, their businesses are their children and they would no sooner give up control than allow someone to take their kids away from them.

If this happens to you and you can come away with a big settlement, put it behind you and go have another child.

what do you think of this? What are your ideas? I'd like to know. Read the articles cited and their references. Post a comment.

Entrepreneurship 2.0 is my entrepreneurship course. The ideas in it supply the life's blood of my professional activities: teaching, writing, and real estate. For entrepreneurial real estate go to www.yourstopforrealestate.com/blog and for entrepreneurial writing to www.kearneymusicschoolmurders.blogspot/com.