Larry and Barry Guide To Understanding Royalties (ePub)

As an investor are you interested in a new approach for receiving increasing income while assuming less risk?

As a business owner or entrepreneur are you interested in obtaining additional growth capital without becoming a fiduciary for people you don't even know? Are you interested in raising capital without lessening your ownership interest in the company? Finally, would you be interested in avoiding the restrictions place on your management of the company by commercial lenders?

The purpose of this book is to help both business owners and income focused investors understand why "Royalties Are The Better Way for Both Investing In and Financing of Businesses".

The providing of growth capital, on fair and performance-related terms, is both good and important for the community. It is the smaller and privately owned businesses which provide the bulk of new employment opportunities as typically they need more people to handle increased sales. Inversely, almost all larger companies have as a corporate objective the reduction in the number of employees per unit of production. This is true the world over.

This book is both a narrative of two notional characters playing the roles of investors and business owners to explore what is good and bad about using royalties. The are also a large number of articles which address the many questions about royalties and why they are a better and a fairer approach to the needs of both privately owned company owners and risk adverse investors.

We have been successful in obtaining a U.S. patent and have another filed and pending, both relating to a revenue-sharing approach as used in financing companies.

There are four different approaches to using royalties in the financing of businesses and we have developed website calculators for each of the approaches. First there is REXRoyalties.com which is the simplest as it reflects the agreement by the royalty issuing company to pay to royalty investors a percentage of the company's revenues for an agreed period. Next, there is REXdebt-shareRoyalties.com in which the investor lends the company money at an interest rate of something greater than commercial banks would charge with a modest royalty commencing on the repayment of the loan. Next, there is an approach which accommodates the needs of more sophisticated investors and business owners and that is REXScaledRoyalties.com in which the parties agree that if the results are better by an agreed amount good things will happen for the royalty issuing company and if there are disappointments in performance then there will be known remedies. Finally, there is what may be the best of approaches for established companies and it is REX-RIAR.com. In the case of the Royalty Issuer Assured Return the company agrees to pay an agreed minimum amount of royalties in an agreed period in return for a lower royalty rate. This approach is a means of risk shifting for the interest of both parties.

The other two website calculators are REXComparator.com where two royalties having different terms but both relying on the same projected revenues are compared in both tabular and graphic form. Then there is REX-PV.com, which calculates the amount a royalty investor would have to receive from another investor for the original investor to receive a targeted Internal Rate of Return.

Readers of the eBook will have access to the four transaction facilitating website calculators plus the two others relating to comparing and selling royalties.

I will welcome opportunities to speak to appropriate groups regarding the many advantages of royalties as well as answering questions.