I want to buy out business partner?

Question

My business partner and I run two companies. In one company he owns 51% and on the other I own 51%.
I want to buy him out. I dont think he will want to sell so I need to get in to a position where he will offer me a good deal to get out.
Failing this how can I resign or dissolve the company

Answer 1

Make him a fair offer, or sell your interests.

Answer 2

When you set up your businesses, you should have signed agreements that set out procedures for dissolving the partnerships by buy-out, resignation, stipulation/mutual agreement, death or disability of a partner. Your first step would be to read those agreements and make sure you understand them. The terms of those agreements will dictate how you proceed unless you and your partner agree to do something else.

I would also suggest that you get an attorney to represent you (and by "you" I mean you and you alone, not an attorney who tries to represent both partners) -- there are a lot of little details that can easily be overlooked when partnerships are dissolved -- for example, if you and your partner agree to dissolve the partnerships will one of your need to sign a non-competition agreement; how will you divide accounts receivable, accounts payable, and profits; will you be agreeing to hold each other harmless; will you be transferring ownership of a company name, bank accounts, inventories, unfilled contracts, telephone listings/websites, e-mail addresses, name recognition, goodwill; will your agreement trigger requirements under the Uniform Commercial Code; how will you determine how much the business is worth -- by appraisal or by some other method, etc.?

A lot will depend on why you want to dissolve the partnership and the the relationship you have with your partner.

Answer 3

one subject is clean - he's not your organization better half in case you commerce by a constrained company - he's a fellow director of the corporate. look on your memorandum and articles of association - it might inform you ways to do away with a director, or besides the undeniable fact that below what circumstances you are able to dissolve the corporate, which may be your basically option. See the agencies domicile internet site and that they've a helpline as properly.

Answer 4

Statistically partnerships last 5 years. Are you there yet? They always find a way to dissolve. With Brothers it's two years.lol..Talk to him and tell him you want to terminate and incorporate on your own. If you're not interested in being with him, he will want to leave also. Good luck.