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If I were to invest into a private company I would want a profit for all the firm members. Isn't it possible to pay dividends while reinvesting into the business?
We could work out a deal where 10% of the weekly profits go to the firm and 90% goes back to cover production, employee and marketing costs. I doubt these numbers are accurate but we'll use them for this example.
Then if the company is sold and the firm owned 40% of it, wouldn't that mean we get 40% of the selling price?
I assume things would be alot less complicated for start-up businesses by the firm.
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