When you’re considering selling your share of a partnership, it’s important to consider these six steps. First and foremost, figure out how much the entire business is worth as well as each partner’s individual stake in that value. Second – before breaking up with any partners who may disagree – decide if there are joint assets like property or equipment which will need to be divided among individuals at some point when they sell their shares. Thirdly- once all this has been determined and documented in writing for future reference-, specify what percentage interests remain available after an original owner sells his/her part of the business: would those percentages involve 25%, 50% or 100%. Fourth step? Find prospective buyers by networking with friends from school (or work
One of the most important steps in selling a business is to remember that you are still part owners after your company has changed hands. The key to not getting left behind with nothing when it comes time for an exit strategy, and remain relevant long into the future, is following what was agreed upon at inception- or else risk being abandoned by possible buyers who will be more interested in someone they know won’t disrupt their plans later on down the line.
Step 2: Meet with your partner to plan how you are going to dissolve the partnership and divide up assets. If there is ever any confusion or doubt about what steps need taken for dissolution, it’s always a good idea consult state law on dissolving partnerships.
Step 3: There are many assets that can be sold such as machinery and mailing lists. The last step is to decide which ones will remain in the company’s control after dissolution of a partnership, or if you plan on keeping your business intact. Now we need to figure out what needs to stay with us when our partnership dissolves so it doesn’t affect our success rate for future ventures – this could include things like intellectual property rights (IPR), customer data, cash balances at bank branches etcetera
Step 4: Pay off your debts. If that is not possible, try to reduce the value of shares you would be selling as a result to reflect what percentage of debt they should represent.
Step 5: Consult a business advisor and perform a business valuation. Before you can sell any kind of business, you need to determine what it is worth. You may be surprised at how expensive your company could potentially end up being!
The process of finding the right buyer is seamless when connecting with a business advisor and getting your valuation done. With pre-vetted buyers, you can sift through potential ones to find the one that suits best for your needs!
If you want to sell your share of a business, contact the professionals at Transworld Business Advisors for help.
