Share
2,453 Posts.
lightbulb Created with Sketch. 217
clock Created with Sketch.
05/09/18
11:40
Share
Originally posted by SatorArepo
↑
A hypothetical:
Imagine you are a large investment house with deep pockets and an interest in property development.
You are forward looking and see that any new development – shopping mall, warehouse, technology campus – would be crazy not to include a roof full of solar panels and a nice, BIG battery. You have an opportunity to invest in a small battery supply chain company with big potential. You are contemplating being a cornerstone investor. What would you do??
Make your own decisions, but here’s what I’d do. I’d let them know that I have strong interest and, take up a stake worth just less than 5% and get a seat on the board. That way, I keep the business going for long enough to get a solid look from the inside. Of course, there are risks so with less then 5%, I can get out quickly in a fire sale. However, my long-term plan would be to inject further capital, as I watch the business steadily de-risk, until I reach a 20…25% holding.
That’s why and how I’d get the seat on the board.
And instead of paying money for the batteries that go into my property developments, I’d be making money from them
Expand
What about when you get to 19.9% holding. Do you know what you need to do next?? This little fantasy that you have just taken us on was a wonderful experience, but it was just fantasy. “Imagine you are a large investment house...” hahaha