Business partner wants buying out

Discussion in 'Growing and Managing a Business' started by keeley89, Aug 15, 2011.

  1. keeley89

    keeley89
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    Hello, I have recently gone into business with a friend. We have signed a 12year lease 50/50 (even though she agreed and was happy to be a silent partner). My partner also agreed to put up more money to set up the business & I am paying back the difference an agreed 3year period (to ensure the business didnt fail). She has now decided it isn't for her & wants every penny she has put it the business back & for me to buy out her 50% share. Please can someone give me advise on where I stand & whether she is entitled to everything she contributed to as it has now left me in a very vuneralble situation & risk of the business failing before it has even started.
     
  2. James Greg

    James Greg
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    As per signed contract you are both legally tied to follow the terms and conditions written on it. Surely you would be facing a dilemma to keep the business going downhill but you should consult a lawyer for better professional advice. Your partner should not be worried about the type of business as she had consented to remain a sleeping partner. Remind her of the agreement and until the tenure is completed she is not entitled to withdraw her money.
     
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  3. Fergal

    Fergal
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    First of all welcome to our business forum keeley89.

    Do you and your partner have a written agreement for the business? If so, does the agreement contain terms dealing with a situation where one of you wants to buy the other out? Unless you have signed an agreement obliging you to do so, you will not be obliged to buy your partner out of the business.

    What country or state is the business based in?
     
  4. daytrader

    daytrader
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    What made her think the business isn't for her? hope you can work it out once you find out.
     
  5. Mountain Man

    Mountain Man
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    The next time I partner with A friend (or in my case a family member) EVERYTHING will be in writing and ALL situations will be concidered before hand.
    Whether she can ask to get out or not, she is still 50% owner, (I think the silent part is irrelevent). If you don't have a writen agreement, The first thing I would do (assuming she won't change her mind, and you don't want or can't buy her out), is look for a partner to assume her share of the business, but get it in writing. OR would it be possible to obtain a loan to pay her back with? One thing to concider is this: If the business does become sucessfull she may be entitled to 50% of the new value of the business.
    Never a good situation to be in and I wish you all the best.
     
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