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Tell your partner you want to buy them out, Welcome
Do you have a Lawyer?? When you started this partnership did you sign an agreement??
What does the agreement say about buying your partner out??
Talk to your Lawyer. LUCKIEST
I did talk to a corporate lawyer yesterday and he told me the same thing. Thanks for your input. I guess I am just a little nervous cause we do get along well, but I have done all the work.
Do you really wan to buy them out or want them to step up more? Ask yourself if this is the frustration of having to do it all and share the profits talking or do you really want to severe this relationship?
I am not trying to talk you out of or in to anything, it just feels like this might be a communication issue about expectations that can be dealt without. Partnerships are like marriages, communication is key - talk with them about your concerns. This could be one of those instances where they think you want to be more hands-on, and they believe they are letting you do what you want to do. Or not. But talking it through will help. Right now it is like the spouse that does most of the work is talking about divorce and the other spouse might not even know there is a problem.
This is all assumption however, because we don't have enough information. But I would still start with talking with them. Now be careful, you may find their increased involvement is not as enjoyable for you as you think - it means giving up some of your authority and power, and things not being done the way you would have had them done.
As the wise man Spock once said, "After a time, you may find that having is not so pleasing a thing, after all, as wanting. It is not logical, but it is often true." I cannot believe I used a Star Trek quote!! Cool.
Tell your partner you want to buy them out
Thanks for the note. It is nice when we give good advice and get feedback that your Lawyer agrees with me.
Happy New Year and let us know if you need additional help.
Who knows? Maybe your partner wants to be bought out... Can you tell us more about the situation?
First add up the reasons that makes you want to buy them out, then add up the reasons why that would not be a good course of action.
Balance the equation.
If you feel that a buyout is still the best course of action then you should approach the question by offering a two way buyout.
I would like to buy you out, or would you like to buy me out?
If you're able to make the case to them that the best course of action is for you to buy them out, then you'll need your accountant or some other impartial party to put a fair valuation on the company and their share of it.
It's a delicate matter. No two partners ever balance the workload and some don't grow with the business as it grows. I did it myself when I bought out one of my previous partners.
What I will say is that if your business is growing you need to make your move ASAP. The longer you leave it, especially if your company is growing, the more expensive it will be to buy them out later. I made that mistake by leaving it an extra year for a buyout and it cost me three times as much for the purchase a year later.
One other thing, don't make it emotional or personal. Make it pure business, otherwise other factors come into play that maybe cannot be reconciled.
Best of luck
Thanks for your input. I have talked to my Attorney an he agrees with what you say.
I guess that's a good problem to have. Congrats on your success! Sounds like you need a real partnership agreement. Good luck.