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What type of entity?
Where are you located?
What are the percentages of ownership?
Do you want/need all cash?
Do either the business or the partner have the means to execute the transaction?
Is the business growing, static or on hard times?
Are you both in the same ballpark on amount, structure?
It sounds like you run the company, how will the business fare after your departure?
Would it make more sense to sell to a third party that your partner can continue to work for?
There are a great many options available to you. You need to know what questions each of you is really trying to answer with this transaction.
Business transition planning is one of my stronger areas. If you would like to go through some scenarios, feel free to email me at bankcardcpa
atgmail.com. Replace atwith @. This is a spam deterrent. Our firm's website link is located in my profile.
Otherwise, good luck.
Have you talked to your local banks (might even look at a SBA loan) - most banks (any lender for that matter) like partner buyouts because they are usually from solid businesses with the cash flow to service the debt as well as having one or more remaining owners with experience to continue the business.
If that does not work, your partner may be able to use personal assets as collateral for a personal loan to buy you out.
Lastly, you could hold a note against your ownership. Let your partner come up with say 10% in cash now, amortize the remaining over 20 years to set the monthly payment - then require a five year (or less) balloon payment - the balloon payment will give you a chance at that time to either re-finance the note with the partner or allow the partner time to 1) get out of this credit crunch we are in and 2) build the wherewithal to seek bank financing for the balloon balance.
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I am looking for options and a strategy for my partner to buy out my shares of our company. We have been in business for 10 years. I am interested in pursuing other interests, but certainly want to be fair, in fact give him a good deal. I would also consider staying on board part time for a while to help him out, as I handle all sales and most management and administrative duties. Any thoughts???