Almost in every business partnership comes to a point when they don’t want to work together anymore. There can be a variety of reasons why they don’t want to work together such as different ideas for the future or they are just not satisfied with the progress of the business and they want to move on alone.
The most common reason why business partnerships fail and broke down is because they don’t have the same personalities. Two people cannot work together on the same project if they don’t have the same ideas and goals in their minds. Sometimes the partnership is ruined because they didn’t sign an agreement that will guide them through the structure of the partnership.
A business partner might want to quit because he has some other business ideas that don’t have the same purpose as this one. Of course, we cannot forget about the other various possibilities such as disability or retirement. If the partners know the process of ending the partnership, it can greatly benefit both of them.
We always say that a partnership agreement should be created at the start of the business. That is because then it can make a lot of things in the future much easier such as the ending of the partnership. The agreement will also help both of you to make decisions together more easily, it will separate the responsibilities evenly so not either of you will get have a harder time running the business.
The partnership agreement can also have information written about the ending of the business relationship between two business partners. if the agreement has included the necessary information for ending the partnership, you should have an easy and simple task. All you need to do then is to follow those guidelines that are in the agreement.
Buying out the Share
In some cases, the partnership agreement will give you the capability to buy out the shares of the other partner or it will give your partner the capability to sell his part of the share to you. For you to buy out his part of the shares, you must pay the price that his shares are worth.
Legally ending the Partnership
This process is very sensitive and can lead to problems and issues if the both of the partners don’t follow the agreement step by step. The important thing that each partner should look for is not to have some unsettled duties regarding the business. If the two of you have problems with evaluating the business, a smart idea is to get someone else, a third party that will complete the estimation of the business.
No Partnership Agreement
A lot of difficulties can occur if you don’t have a signed partnership agreement. Sometimes because there is no partnership agreement, owners don’t have any sort of help that will guide them and resolve their problems. In those cases, they need the help of the court, that way all the legal problems will be solved.