About Co-Investing With Westernston, Inc. & Inside ALPHA
Why are you only raising $500k?
$500k is a rough amount. We might be able to accommodate a little bit higher amount, depending upon which deal we end up closing. Westernston, Inc must retain at least 50% control over the business being acquired in order to remain a multi-national corporation for easy flow of resources and people across borders.
What’s the update on the trucking deal?
In accordance with our revised projections in May 2019, we’re expecting to declare a dividend at the end of this year (2019) for all our co-investors. We will, at that time, also present a brief report for review.
I didn’t get reports last year on the trucking deal. When will I get them?
Along with the dividends at the end of 2019.
What kind of reports should I expect from you?
An annual report with yearly profit and loss statement as well as balance sheet will be provided for your review at the end of the year. We will also provide details about all the taxes filed.
What is the minimum investment?
The minimum investment is $10,000. Since each share of stock is priced at $1000, the minimum investment amount of $10,000 provide you with ten shares of stock.
What is the maximum amount I can invest?
We have not determined a maximum amount of investment we would accept from one particular investor (individual or entity). However, if you would like purchase more than 25 shares of stock, please get in touch with us to see if we can accept a lower administrative fee.
What do I get now?
When you pledge an investment amount, you will automatically agree to abide by the terms of conditions laid out in our non-disclosure agreement as well as the non-complete clause(s).
Once we receive your pledge, we will send your contract for digital signatures. You can use your computer to sign the contract digitally after review. We will send it to you within one business day after receiving your pledge. You will then have up to three business days to sign the contract.
Once you sign your contract, you will have four business days to initiate the wire transfer. The account details will be provided to you upon contract-signing.
Once your wire transfer is received, you will receive a stock certificate that mentions your stock-ownership details and the relevant conditions.
How much time will I have?
Within one business day of pledging, you will receive your contract.
You will have three business days to review and sign the contract, and thereafter four business days to initiate the wire transfer.
Are there any fees?
The standard administrative fee is 12%.
For investors who have co-invested with Westernston, Inc. before, this fee is reduced to 10%.
For investors wishing to transfer their investment funds in any currency other than USD, a 1% currency conversion fee will be charged by our bank.
For investors wishing to acquire more than 25 shares of stock, Westernston might be able to offer a discount on the administrative fee.
Why are you charging an administrative fee, and why does it seem steep?
Conducting a deal of this scale requires a lot of time, money and effort, especially for performing due-diligence, and hiring the right (third-party) service providers and experts.
As we have discussed before in our presentation on challenges and viability (Accessible by clicking here), even though the deal size is significantly smaller than the kind of deals a private equity firm would normally conduct, performing due-diligence and ensuring legal, financial and economic compliance costs almost the same amount of time, money and effort.
As such, while the “closing costs” or administrative costs might be 5% or lower for a larger deal, the closing/adminsitrative costs for a deal of this size and scale are somewhat higher.
What currencies do you accept money in?
We prefer USD transfers.
We also accept CHF, GBP and EUR, but our bank charges an approximately 1% currency conversion fee.
How much time do I get to transfer my funds?
You will have four business days after signing the contract to initiate the wire transfer.
Will I need to pay taxes?
Yes, you will be taxed in your own local jurisdiction.
You will be receiving dividend income on an annual basis, and you should consult your tax advisor or accountant to discuss taxation.
You will also be receiving a capital gain after a period of a few years. Again, taxation should be discussed with a trusted tax advisor or expert in your own local jurisdiction.
What kind or class of stock will I hold?
Class A (dividend priority (10%) and liquidation rights only)
NOT an alphabet stock
Westernston, Inc. will not derive any dividends unless the dividends exceed 10% of the par/face value of the stock, and only Class-A stock holders will receive dividend until this point. For dividends beyond 10%, Westernston, Inc.’s common stock and Class-A stocks will be treated proportionally.
Westernston, Inc. will be commissioned the de-facto advertising/marketing/technology/logistics agency for the target entity or entities.
One voting right per share of stock (common or Class-A)
Can I receive more frequent updates or reports than once a year?
Unfortunately, not. We are constrained by time and human resources. We only have so much time and manpower, and there is a lot to do. Not only will we be supervising the target business, our entire team will also be busy working on systemizing the operations, documenting systems, building brand equity, increasing marketshare, optimizing product and service offerings and introducing new products, services, subscriptions and ideas.
As a result, we can only commit to providing one annual report.
What will your policy on retained earnings be?
We will retain roughly 40% of the annual earnings.
The retained earnings will be used to fund business growth and brand equity development.
Our objective with dividend distribution is consistent growth. We would rather start with a lower dividend (like 6% or 8%) and continue to distribute at least that much every year, rather than having a fluctuating dividend that varies wildly from year to year.
So if we declare an 8% dividend after the first year, then you can be reasonably assured that you will continue to receive at least an 8% dividend each following year. We will make our best attempt to not lower the dividend from one year to the next.
What are the tax rates in New York?
In New York City, sales are taxed at 4.5% by the city and 4% by the state.
The state taxes on business income vary between 4% and 10%. There are some standard charges such as New York State FDM (Fixed Dollar Minimum) tax which depends upon gross sales, or reciepts. For corporations with receipts more than $1,000,000 but not over $5,000,000, FSM tax is currently $1,500. While for businesses with receipts more than $5,000,000 but not over $25,000,000, it is $3,500.
State taxation in New York is not straightforward, and we use the services of professional tax auditors and attorneys to help us. Generally speaking, New York corporations are subject to the corporation business tax, which is based on the highest of: the corporation’s business income base, the corporation’s business capital base, or FDM (see above).
And finally the federal taxes are 21%. Prior to the Tax Cuts and Jobs Act of 2017 thanks to Trump administration, the tax rate was 35%. This corporate tax rate applies to a business’s taxable income, which is revenue less expenses.
We’ll provide annual tax filing reports and copies for your reference and review within your annual information package.
When will I get to know the names of the entities being purchased?
Ideally, we would disclose the name and address of the business purchased after the deal is signed.
But, if you would like to know sooner, please email us, and we will disclose as much information as we can safely disclose.
I would like to download the Kelly calculator and growth estimator tool even though I understand it’s rather simplistic and rudimentary.
Westernston is the world's leading business systems architecture firm.
We help our clients with systemizing their business' operations and growing their brand equity.
To this end, we provide tools, training and other work-product that help them stratgically achieve their objective(s).
Who We Work With...
We only work with a very small number of clients at any given point of time. Working with a client requires a lot of attention, focus and dedication on our part, which is why we have to be selective about who we work with.
Consequently, we only work with clients who control their own brand in its entirety. Which means, we do not work with franchise businesses, or with businesses that sell products that could be classified as commodities.