Ownership of Money Sold for company share

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If you have ever watched the Dragon's Den or similar shows, basically people go and ask for $100,000 for 20% of their company. What I would like to know is how does this works. Who owns the $100,000 and is there any rules around them? For example, can I pocket it or use it to buy another person out who lets say somebody who owns only 10%. Can I give them 10,000 and take their 10% should they agree to it. I never really understood how this worked and I'm curios as to some general guidelines.






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    If you have ever watched the Dragon's Den or similar shows, basically people go and ask for $100,000 for 20% of their company. What I would like to know is how does this works. Who owns the $100,000 and is there any rules around them? For example, can I pocket it or use it to buy another person out who lets say somebody who owns only 10%. Can I give them 10,000 and take their 10% should they agree to it. I never really understood how this worked and I'm curios as to some general guidelines.






    company sales






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    Bojan is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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      If you have ever watched the Dragon's Den or similar shows, basically people go and ask for $100,000 for 20% of their company. What I would like to know is how does this works. Who owns the $100,000 and is there any rules around them? For example, can I pocket it or use it to buy another person out who lets say somebody who owns only 10%. Can I give them 10,000 and take their 10% should they agree to it. I never really understood how this worked and I'm curios as to some general guidelines.






      company sales






      share







      New contributor




      Bojan is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.











      If you have ever watched the Dragon's Den or similar shows, basically people go and ask for $100,000 for 20% of their company. What I would like to know is how does this works. Who owns the $100,000 and is there any rules around them? For example, can I pocket it or use it to buy another person out who lets say somebody who owns only 10%. Can I give them 10,000 and take their 10% should they agree to it. I never really understood how this worked and I'm curios as to some general guidelines.






      company sales




      company sales





      share







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      Bojan is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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