Fractional Ownership
Fractional ownership refers to an individual owning a percentage (under 100%) of an asset. Fractional ownership is very common in assets such as real estate time shares, private jet, and luxury vehicle ownership.
It is best suited for assets that may be too expensive for one person to own and maintain. Thus, the fractional owners enjoy the use of the asset and share in the costs of owning and operating it.
Fractional ownership is also present in a fractional website sale in which the website owner seeks funds to grow the website. The new fractional owner may not be involved in the day-to-day management of the website but shares in the website’s income.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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