More details to this question:
My partner wants me to buy out our business. I have a minority share. I only want to keep about 60% of the business. Is it possible to sell of the other part of the business and use the funds to pay my partner off the 40% we’d like to sell? And I will pay for the 60% I want. I’m not sure if this is something people do (sell portion of business vs the whole thing). I’m not really asking about our agreement as much.
1 ANSWER
It is not unusual for people to sell part of a business. The easiest way probably is to incorporate the business (assuming it is n ot already operated by a corporation) and then sell some of the stock, but it can be done even if the business is a sole proprietorship. Of course, a buyer is likely to pay less for a minority non-controlling interest than for a controlling or equal share. Also, without knowing anything about your business, I think a buyer may be concerned with your partner competing with the business once he is bought out, and may want your partner to sign a non-competition agreement as part of the deal.
Answered on Jul 01st, 2021 at 2:13 PM