I have an opportunity to invest and was womdering if any of you money folk could help me on this. Here is the deal.
I initially invest x dollars into said arrangement and a percentage of my current salary would go to upkeep. If the number of employees increases, so does the percentage of my salary that goes to upkeep. There is slightly above a 50% chance that this arrangement will fail and I will be stuck paying "severance" that could last a long while. The upside is the less than 50% chance that it works, things go REALLY well. My partner in the deal comes in with nothing invested and if it goes bust, really only gains.
In the eyes of a Financial advisor, is this a good deal?
I initially invest x dollars into said arrangement and a percentage of my current salary would go to upkeep. If the number of employees increases, so does the percentage of my salary that goes to upkeep. There is slightly above a 50% chance that this arrangement will fail and I will be stuck paying "severance" that could last a long while. The upside is the less than 50% chance that it works, things go REALLY well. My partner in the deal comes in with nothing invested and if it goes bust, really only gains.
In the eyes of a Financial advisor, is this a good deal?