Converting in-debtness into profits
Companies may see the type of equity received as a vehicle for tax consequences. Investors do not, since they will hold face value of the equity directly through a note payable (exchange indebtedness with an initial maturity of agreed years). Here comes the opportunity to elaborate a state of current business valuation , including the debt to find the best and most appropriate option turn around the solvency of the company and start over. Indeed, it will take a solid partner to understand the real “nuts and bolts” of a company.