That sucks

I have been hard at work trying to get on top of bills, and at the same time I've been trying to get on top of buying into this partnership with a mate of mine.

Sadly, my accountant called me yesterday to inform me that it is not a good business to buy into. I won't publish the financial information. However the debt this rehearsal/recording studio is in is about the same as the revenue it brings in.

Take out all the expenses, and you have a tiny portion of money left over that wouldn't even cover my mortgage, never mind the rest of my bills.

This really sucks.

Now, do I try and cypher the accounts further or take the initial advice of my accountant and walk away now?

I'm guessing I should walk away. First impressions are showing that the business isn't running to healthy. I was told by my accountant that if I buy into the business, since revenue is equal to debt, the business is worth nothing. However, I'll be buying into the large debt, and responsible for it regardless of how much or little I buy into the business.

That's not really a risk I want to take since I was already going to take out a loan (more debt) to buy into this in the first place.

I'll be jamming with my mate tonight and I guess we'll chat about it when I see him.

I do recall he said that he pays all his bills via the business. Perhaps the debt is his home loan? I'm not sure until I see it all. But at this point a nail has been hammered into the coffin, hopefully not the last one.

pip