  |
|
|
| Author |
Message |
welbie
Apprentice
Joined: 24 Aug 2004
Posts: 5
|
 Posted: 10/13/07 - 08:57 Post subject: |
 |
|
My partner and I are running a small company. He has no interest in continuing this business and wants to get out. I understand that he changed his mind, but now I have to run the procedure of buying out a partner. How to end this efficiently? How to handle valuation of his share and what about tax and other costs? I want everything to be as painless as possible for both of us, and to remain the business value.
|
|
|
Back to top
|
|
|
|
 |
clerc
Apprentice
Joined: 15 Mar 2006
Posts: 3
|
| Posted: 11/14/07 - 02:14 Post subject: |
|
|
| I presume that you negotiated with your partner about whether it's going to be a full buy out or you agreed to buy a part of his interests. Make sure how much money is necessary for buying out. Calculate how long would it take to return the money you used for this, how would your business manage it? Maybe it's a good way to consult an adviser to valuate your business, and then according to percentage of interests you will get an image of money needed. If you have no possibility to buy out instantly you should inform about alternative ways. It would be great if your partner accepted some kind of deal, maybe like monthly payments but if he is in need of money consider taking a loan. Many banks offer suitable loans for this kind of situation. The key of successful buy out is good planing. Also make sure to fill legal obligations, and calculate buying out tax. Discuss with your partner boldly, make the deal together or if that doesn't work consult a professional adviser. |
|
|
Back to top
|
|
|
|
|
|
| |
All times are GMT
|
|
|
