Forums: Discussions for entrepreneurs and small business.

Greetings all.

New to this forum and I need some advice. I have a small business in Jamaica that sells technology (online, unlike 95-98% of the stores out here) and provides a host of techie services. An associate of mine recently closed down one of his businesses and is currently looking to invest the money he got from selling assets elsewhere. He and I have had a number of discussions before and he is really interested in investing in mine. I've been running this business by myself for the last 3 years or so and as of August of last year, there has been stable & impressive growth. Nevertheless, based on the research I've done before starting and comments from my current and potential customers, this business has the potential to do at least 5 times better than it currently is.

I'm not particularly looking for a partner; I'm more looking for an investor; but the gentleman interested in investing, isn't just looking to invest, he's looking to be a part of the business. If we decide to move forward together, the amount of equity he'd get would of course be equivalent to the percentage (of the value of the business) he invests. He would not be involved in the day to day operations, he'd only pump money for the growth of the business, etc; and he would want us to re-register the business so as to reflect that it is a partnership between the two of us. I wouldn't want it to be that he has check signing privileges, or the ability to make any form of decisions with any outside entity or anything of the sort. I would want it such that he only pumps the money, has enough privilege to check up on what's going on, make suggestions, etc and reap his percentage every 'x' months; pretty much a sleeping partner.

My questions are as follows:

1. Does anyone know of cases where sleeping partners are registered as part owners of the business?
2. If it is that I re-register with him as a partner, can anything be done (contract maybe) that states essentially that he doesn't have owner privileges per se?
3. Does anyone have any tips as to how to value a business?
4. He's very willing to work with me (he even brought some money today ), and he just wants to feel like he's a part of the business, rather than just the cash cow. Does anyone have any suggestions as to how I can give him this feeling of involvement without having him being a decision maker in my business?
5. Any tips or anything else that you guys would think I'd need?

Crazy thought...why don't you contact an attorney in Jamaica?

I'm definitely going to do that. But c'mon...this is an entrepreneurial forum and I've and entrepreneurial question...doesn't hurt to ask.