My boss has recently told me that he has to declare bankruptcy due to a massive client who never paid. He is offering me partner status in the next company and I could really use some outside advice. I’m 20, in college, and planned on going into sales. My business on the side hasn’t had any traction for a while due to my lack of connections, but my boss has consistently had work for my company since his network is huge. He’s s offering ownership in a new company which will have the services I offer, with his connections, as well as all of his contracts from the previous company, which is well into six-figures. I’d be bringing skills and labor to the table. He’d be bringing that, plus connections and current contracts/relationships.
Where do I start? This seems like a great opportunity but throws a wrench in my other plans. Any outside opinions, and questions are welcomed! I’ve never faced something like this and have no clue where to start.
Check how many businesses he has. There might be a few connected ones. A bankrupt business can be turned into a phoenix company once the debts are gone. In the us he could have used bankruptcy protection. There are also things like debt insurance that could have been used as well as factoring. Ask him about the business. Then have a look at the audited accounts for the bankrupt business.
Some people have a habit of starting or buying businesses so they can have a large turnover, use that to borrow lots….then pay themselves a huge wage and leave the struggling business to someone else or to let it fail or both.