Long story short, DS recently bought into a business as an owner/partner. The business is taking off and the stated goal is to sell to PE within 3-4 years.
What’s the best way to include a business as a line item on our personal portfolio?
1) Is it as simple as adding DS’s ownership stake as a % of the overall value of the business?
2) How do we treat the buy in and periodic draws? I loosely equate this to purchasing an index fund and getting dividends.
3) Does the PE opportunity factor in at all? I don’t think so but would like input.
Ultimately, I want to be able to say DS’s business is some % of our overall portfolio, and be able to track the growth similar to how we track market growth of our portfolio.
Thanks!
What’s the best way to include a business as a line item on our personal portfolio?
1) Is it as simple as adding DS’s ownership stake as a % of the overall value of the business?
2) How do we treat the buy in and periodic draws? I loosely equate this to purchasing an index fund and getting dividends.
3) Does the PE opportunity factor in at all? I don’t think so but would like input.
Ultimately, I want to be able to say DS’s business is some % of our overall portfolio, and be able to track the growth similar to how we track market growth of our portfolio.
Thanks!
Statistics: Posted by bjc3 — Fri Jul 05, 2024 10:05 pm — Replies 2 — Views 247