I am looking to invest in an online retail business and right we are negotiating with them and have stuck at one point.
Heres the proposal that we are trying to Solve.
So there is a company called “Company A” that has offline stores with good number of loyal brand following but it doesn’t have online presence. Company A has its online platform ready under a domain name “A.com”. Now they were looking for the driver to drive “A.com” and partner for the website as they are busy with their offline stores and no online knowledge. So we(Company A+B) have agreed to put 50-50 to run this online business. Hence, decided to form a company where A and B will be partner to run Online Retail called “Company X”. Now the catch is Company A is saying that we will keep “A.com’s” ownership with Company A and will rent it to Company X for 3 or 5 years because Company A is “Brand” + they have put huge money to build the website. So they think we may sell our stakes and we might get paid 4x or 5x more after an year than what we put in the company today, since Company A is Huge Brand But vice versa we told them that what after 3 to 5 years you take away its ownership our entire effort that we put in the company building it will go in vain.
We are meeting on Thursday again to discuss!
So we are stuck here what should we do? How can we come to an mutual agreement.
Need your help guys.