Advice on Becoming a Part Owner

Discussion in 'Growing and Managing a Business' started by Curious Newbie, Jul 25, 2017.

  1. Curious Newbie

    Curious Newbie
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    My fiance (let's call him Bill) has been working for a local concrete company (laying concrete, not making it) for over 5 years. He has a great relationship with the owner. The owner and his wife have always dropped hints about him owning/running the company one day, since the owner has no sons. The owner does very well for himself and treats all of his employees very well, especially Bill. They're always busy and business is good, sometimes they even have too much business to handle and the owner does hardly any marketing, mostly word of mouth is how he gets business. He even finds things for them to do in the winter, so no one gets laid off. All of this being said, Bill was approached by the owner yesterday. He let Bill know that he wants him to become part owner in the company, and one day run it, since he is planning on retiring in the next 5 years. He wants my fiance to have incentive to stay with the company and keep it running after the owner retires. I don't think there is any bad intentions at all with this deal, I just want to make sure I ask all of the right questions and take all of the right precautions before we sign or agree to anything. The owner and his wife want to sit down with Bill and I (they want me to be on board too since I'll have to handle the financials, etc. once the owner and his wife retire) and their accountant after we are married (September) and have settled into married life for a bit, so I don't have many specific details about how he wants to go about making the deal or anything. I wanted to reach out and make sure I go about this in the right way and ask the right questions. I also don't really know how this works or what the process is like for someone to become part owner in a business. Any advice helps!

    Thank you!
     
  2. Brooke Harper

    Brooke Harper
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    I have to say that the owner appears to really trust Bill and you in a way that they consider you family. I also feel the same that there are no bad intentions from the owner, it seems that they're genuinely looking for someone to continue their business and legacy (since you said they have no sons to do so).

    Since we have no idea yet about the terms that the owner will include in the agreement, let just think of the possibilities or about what you have to consider. Again, these are just a few that I can think of that I'll personally check to help me weigh options. Give us an update too!

    *How will the profit be divided? (since Bill will be a part owner)
    *How will the part ownership happen? (Will you be sold stocks? Are you required to purchase part of the company? How's the setup for that?)
    *You need to really know the status of the business. (What can you predict in the next 5-10 years?)
     
  3. StarFootballacademy

    StarFootballacademy
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    if we both have the same values it easy, otherwise if one has the money and one the work it will not work. When I started my youth football training company in Dubai, I was looking for a partner as I have a teaching job that I still love to keep. I was looking everywhere and I had so many meeting and once I was close to open the company. Something have happened finally last year, I have decided to open and everything is working very well.
     
    #3 StarFootballacademy, Oct 27, 2017
    Last edited by a moderator: Oct 27, 2017
  4. Aaron Harden

    Aaron Harden
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    This sounds like a great opportunity but be very cautious. Even if you think everyone is nice and wants to make it happen, it can go south fast. You definitely need a formal business transition plan that covers everything...everything. You need a lawyer to draw up a contract so everyone knows what is expected. This protects not only you but also the current owners. I recently bought my business from the current owner - window cleaning and gutter cleaning. Trust me.

    Aaron
    Top Notch Window and Gutter Cleaning
     

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