Best part of a co. breaks off and needs capital, Suggestion

[LAbull]

Good Morning Fastlaners,

It's been awhile since I logged in however I am at a standstill need some advice.

While forming a new company through the standard channels/practices (40 Page Business Plan, meetings to raise capital, marketing & sales, ect...) I have had a HUGE opportunity thrown in my lap.

Basically the company I am still working FOR while raising capital for MY NEW company is about to fold-100% due to the management styles & greed. Old company management has managed to ruin every relationship possible.

That being said the company could of been VERY successful if relationships were handled correctly and management was not so greedy.

The industry is one of the fastest growing industries in America right now and without giving away to much it's heavily intertwined with advertising.

The best parts of original/old company-Vendors, Partners, Brains (people who actually did the work), Clients have stated they will move with me to the New Company I have formed.

Originally the New company was related as far as industry but the final product was different. Now, new company has the ability to offer everything the old company did but faces one problem.

There are several large investments that need to occur ASAP as the opportunity can easily be lost. Essentially the capital investment would purchase technology to supply the new company and it's clients with a highly profitable ROI.

New company does not have any R&D needed. Product already exists and has maintained the relationships while OLD company ruined them.

Bottom line/question: New company needs a way to present to preferably Angels however will take the VC route if necessary but the whole process has to be expedited. Have any of you had experience in a similar situation? What do you suggest?

Thanks in Advance for your help!:thankyousign:

 

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[Runum]

What would be the possibility of your new company getting sued by the old guard after you are running? They would allege that you used your inside knowledge and contacts to undermine the business of the old company and to steal their business. Investors may be and should be worried about this. Good luck.

 

[LAbull]

0% chance.

No NDA/Non Compete.
No undermining involved because everything that the team did that's leaving contributed to the company making as far as it did. This can easily be proved.
Old company has not made payroll in over 2 months.
Old company has not paid vendors.
Old company is looking for outside investors but is not willing share the pie

I'm sure this happened countless times in history when companies split. While there are relationships that will go one way or the other there is really ZERO IP. Even in court, vendors would easily stand behind new company.

I understand your point and is something to prepare for just in case. Thx.

 

[MJ DeMarco]

Any chance you can partner with a vendor/supplier/customer that knows your business?

 

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[LAbull]

That is the path we are leaning towards right now....

 

[LightHouse]

If it has the value you speak of someone with cash will certainly step in. I wouldnt see why not. Good luck with it, we would love to know the progress.

 

[LAbull]

Thanks. When the financing comes through I will be happy to share more.
It's actually a great story. Just to much to put out on the web right now

Shining example of how working hard and valuing relationships can really pay off in the long run.

 

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