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    2 Replies Latest reply on Aug 30, 2008 9:46 AM by DomainDiva

    Questions about buying out partner

    1enick72 Newbie
      I have many questions about the best way to go about this process. I am a 50% owner of a business that was started about 3 years ago. Not thinking when our papers where written up everything was set up 50/50. We build products that I designed and built. The only money that was brought in by either party to start was about $50 for materials and a few cheap tools, all reinvestment after that. Since our paperwork is written up as 50/50 I'm sure I'm not entitled to anything extra. Should I consult with a lawyer?
      What is the best and most accurate way to get a business appraisal done? I've told my partner what I want to do and he is open for me to buy him out or him buy me out. He is in charge of sales and marketing so I'm not sure how he expects to sell a handcrafted product that he cannot build.
        • Re: Questions about buying out partner
          LUCKIEST Guide
          Questions about buying out partner, Welcome Eric

          It sounds like you and your partner are still talking and are friends.
          Why not start simple and ask him who much he wants to be bought out of the business and
          or how much he would give you for the business.
          If both of you agree with the Amount and the Terms, it sounds like a go.

          I always say that in business you should have both an Accountant and a Lawyer.
          This might be the exception.
          Eric you should consult with a lawyer if you and your partner are very far apart with price,
          value of the business or some other problem comes up.

          Good luck, LUCKIEST
          • Re: Questions about buying out partner
            DomainDiva Ranger
            First, get an attorney and make sure he/she has all of the original partnership agreement(s) as well as any amendments (if any) to the partnership.

            Your CPA (please tell me you have one, if not GET ONE!) can value the business and prepare an audited statement.

            Your CPA if you are getting a new one.... will need all of your tax returns and bank statements for as many years as you can deliver, as well as a list of what each partner brought into the partnership at the inception, this can also include skills as well as tangible items such as those you described.

            It will be important for your CPA to work WITH your attorney on this.

            Another thing, (I am addressing your last statement that sounded sort of snide...) treat your partner as you would want to be treated, it sounds like your partner is also your friend. Don't get greedy...sales and marketing is just as important as the product itself..other wise how would people buy the product?