Yes there are ways to get financing (especially if he is your father).
the easiest way is to offer your father NOTES (with or without) interest
for his share of the business.
Then there are banks and private investors (like myself)
You will need a business plan
Good luck, LUCKIEST
Welllll....I (kinda-sorta) agree with Luckiest.
Think in terms of need. Your dad probably doesn't need (a lunp sum of) money. It's probably not even in his best interest (Tax-wise) to get money in a lump sum. What your probably dad needs, is continuing income.
(You'll note that I use the word "Probably" often.....that's an asumption, but based upon a pretty common situation.)
If my assumptions are correct, a simple loan, with a long-term payback, should provide ideally to fit HIS needs as well as yours.
Welcome back Uncle Leon.
It has been awhile.
Great answer (since you kinda agree with me)
Hi julthezak ,
Uncle Leon and Lucky have brought up some excellent points. Depending upon your father's situation a lump sum might very well be disadvantageous for his taxes. I agree with the advice that repayment notes set up over an extended period of time might be the best way to go. Barring that, it is possible that your father may be able to co-sign for a loan for you based upon the future earning potential of your share of the company.
Of course, you and your father will want to contact a tax adviser as well as an attorney to make sure all details are agreed upon ahead of time. You will want to make sure it is fair to all parties, as family is involved, to resolve any possible future hard-feelings or misunderstandings.
Best of luck to you! Please let us know if you've explored any of these options and how things are going for you.
This is my EXACT situation. Right down to the manufacturing and partner. Mine may be a little more complicated as my fathers partner wants to sell everything and cash out. Which presents a problem because I don't have the cash to do that. my father and his partner owns the land and building personally for tax purposes and collect rent from the company.
I wrote a proposal for both of them to go over but my fathers partner is less than excited and still wants to liquidate (btw, he has no children to pass the company to). My proposal consisted of a lease with purchase option on the property and a note for the shares in the company. I think my father will be ok with all of it but he is getting frustrated with his partner and I don't want him to throw in the towel to him. It's ridicules to sell the property now with the economy the way it is and to vacate the building and let it sit is so stupid to me but that's what it seems like he wants to do.
My first question is how did it turn out for you with your purchase and how did you structure the note? Is there a template somewhere for the verbiage on this? Secondly, can my father hold his partner up with his plans? What can I do to make his see that mo payments will be better than nothing while the building sits idle (and btw I'll need to probably rent somewhere up the road ! stupid!) I would love to see the how your note was written to give me an idea on how to write this so everyone feels comfortable. I hope someone can help with some kind of direction. I'm at my wits end. Thank you.
whoaaaaa...Hold the phone ! .... There are so many questions here, I have no idea where to start. One question (or several) concerning your dad's relationship with his partner: Much depends upon how their partnership agreement is worded, and whether they had the foresight to prepare for a seperation by including such a possibility in the original partnership agreement. (If this is, in fact, a "Partnership" form of business)
I seldom get onto this forum. But because you addressed this to me as a personal contact (which was forwarded to my email address); I would like to provide you whatever insight I may offer.
I don't begin to have time to address all this in a written reply, as there are so many questions. However, if you would like to discuss this by phone (You remember telephones, don't you?), I'll discuss it with you. Other than that, my best guess is that your dad's partner can hold out for whatever his partnership agreement allows. What may or may not make sense, really has nothing to do with it... If you wish to talk via phone, contact me first by email, from your REAL email address, and include a phone number and the best time to call you.
HI, I have worked for my father my whole life (30 yrs) in the manufacturing field. I am currently the office manager of his company which he is in partnership with 1 other person. He would like to retire as soon as possible and there was talk at one time of me buying his portion of the business but I have no collateral or available funds to do that. Once sold he is going to stay on for a year as a consultant The business is profitable and always has been and the future looks the same. My question is, is there a way to get financing for this somehow or at least a down payment?