Buying out a Business Partner?

[ShortRoundChief]

Originally Posted by NewChief

That's a good point, and we've been told to just go that route (dissolve the business, then reform it as something else under our sole ownership). The main thing we're buying at this point is the brand/identity and, I suppose, the assets in the storefront.

Are you going to retain location? What's the value of the assets? How attached to the store name?

Just my simple opinion but it seems to me regardless of who has put in what, unless a stipulation of ownership based on percentage invested was involved, a liquidation should be 50-50. I would think if you're trying to retain location, agreeing to get their name off the lease would be sufficient to buy out the name and pay 50% on all physical assets.

[Saul Good]

Originally Posted by J Diddy

Are you going to retain location? What's the value of the assets? How attached to the store name?

Just my simple opinion but it seems to me regardless of who has put in what, unless a stipulation of ownership based on percentage invested was involved, a liquidation should be 50-50. I would think if you're trying to retain location, agreeing to get their name off the lease would be sufficient to buy out the name and pay 50% on all physical assets.

If there's a lease with the partner's name on it, that is a liability to her. Her share of the balance of the lease should be subtracted from her share of the hard assets.

[NewChief]

Originally Posted by Saul Good

If there's a lease with the partner's name on it, that is a liability to her. Her share of the balance of the lease should be subtracted from her share of the hard assets.

Good point. Thanks.

[ShortRoundChief]

Originally Posted by NewChief

Good point. Thanks.

Great point. Glad I thought of it.

[ShortRoundChief]

Originally Posted by Saul Good

If there's a lease with the partner's name on it, that is a liability to her. Her share of the balance of the lease should be subtracted from her share of the hard assets.

I agree. My suggestion was a painless way to get ownership of the business name without a payoff. All they would have to do is fulfill the lease obligations, which they would do anyway. If they are planning on retaining location and name a simple gesture such as that may open the negotiating table up.