Comments on: How To Break Up A Business Partnership http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/ Sat, 11 Feb 2012 17:39:00 +0000 hourly 1 By: creativeannie http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42981 creativeannie Mon, 26 Dec 2011 11:06:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42981 I have been in business with my fiance for nearly 5 years. I met him over 5 years ago. He was in debt, but had a great business already. I financed the start up from my divorce settlement and we lived on the divorce money for a couple of years, rented, paid private school fees, until we could pay ourselves a wage. Now are sales are about $500,000AUD a year, we are profitable, and we've been able to buy a house together. I believe I have put in about 70 - 80% of 'sweat equity', marketing, bookkeeping, filing, e-mailing, etc in the 5 years too. (He would never admit that). He is an alcoholic and I just can't live with him anymore. He's dabbled in a bit of help to stay off it and can at times. But I have two teenage kids. I nearly left him earlier this year. I don't think I can split with him without emotion and stay business partners. I wonder if we can branch off and both get one or two of the arms of the business each. One branch is very new and has the potential to make quite a bit in the future. The other main branch is well established with guaranteed future earnings and thousands of leads but may not be as much. I am worried he might get very nasty, but I am happy to get a lawyer and already saw one earlier this year. After reading all the comments I think we need the business worth valued. I am seeing our accountant next week too. I have been in business with my fiance for nearly 5 years. I met him over 5 years ago. He was in debt, but had a great business already. I financed the start up from my divorce settlement and we lived on the divorce money for a couple of years, rented, paid private school fees, until we could pay ourselves a wage. Now are sales are about $500,000AUD a year, we are profitable, and we’ve been able to buy a house together. I believe I have put in about 70 – 80% of ‘sweat equity’, marketing, bookkeeping, filing, e-mailing, etc in the 5 years too. (He would never admit that).
He is an alcoholic and I just can’t live with him anymore. He’s dabbled in a bit of help to stay off it and can at times. But I have two teenage kids. I nearly left him earlier this year.
I don’t think I can split with him without emotion and stay business partners. I wonder if we can branch off and both get one or two of the arms of the business each. One branch is very new and has the potential to make quite a bit in the future. The other main branch is well established with guaranteed future earnings and thousands of leads but may not be as much. I am worried he might get very nasty, but I am happy to get a lawyer and already saw one earlier this year.
After reading all the comments I think we need the business worth valued. I am seeing our accountant next week too.

]]> By: Angela http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42954 Angela Fri, 16 Dec 2011 17:27:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42954 Hi Mike, I have a similar situation as Jack does and I notice that you emailed him privately if I tell you my exact situation can you please offer some advice? Hi Mike, I have a similar situation as Jack does and I notice that you emailed him privately if I tell you my exact situation can you please offer some advice?

]]> By: Anonymous http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42873 Anonymous Mon, 21 Nov 2011 21:22:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42873 Probably not legal (unless she has majority OR your operating agreement allows that provision). I hope you have an operating agreement and/or partners agreement. no matter way GET AN ATTORNEY! Probably not legal (unless she has majority OR your operating agreement allows that provision). I hope you have an operating agreement and/or partners agreement. no matter way GET AN ATTORNEY!

]]> By: Ree Ree 86 http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42831 Ree Ree 86 Mon, 14 Nov 2011 13:27:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42831 Help, My sister and i started a cleaning business as equal partners, now as a result of a disagreement, she has fired me, is this legal?? does she have to buy me out or is there anything i can do about this Help,
My sister and i started a cleaning business as equal partners, now as a result of a disagreement, she has fired me, is this legal?? does she have to buy me out or is there anything i can do about this

]]> By: Key Things to Avoid as a Business PartnerPremiumShare http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42721 Key Things to Avoid as a Business PartnerPremiumShare Thu, 27 Oct 2011 20:33:39 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42721 [...] Business partnerships can be a viable solution for any start-up’s success. Not all need to end on a bad note as long as you put everything in writing and beware of the partner that says “his hand shake is his word.” For more first-hand advice, read Michael Michalowicz’s, article “How to Break Up a Business Partnership.” [...] [...] Business partnerships can be a viable solution for any start-up’s success. Not all need to end on a bad note as long as you put everything in writing and beware of the partner that says “his hand shake is his word.” For more first-hand advice, read Michael Michalowicz’s, article “How to Break Up a Business Partnership.” [...]

]]> By: Mike Michalowicz http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42167 Mike Michalowicz Thu, 30 Jun 2011 15:04:27 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42167 Jack - I sent you a private email. Jack – I sent you a private email.

]]> By: Jack http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42154 Jack Wed, 29 Jun 2011 22:42:03 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42154 Hi Mike, I love your web site. Thanks. I'm in need of some advice. Any chance? Basically, I co-own a business and now I don't want to be a part of it any more. It's a small business which has inherently broken even. I've changed locations and pursued a new job and gone a new direction in life. My business partner has decided to dissolve the business in my absence. However, he's not making any quick moves to do so...nor is he making moves to get me what I need to sign and un-attach myself from the business. My issues isn't regarding any "buyout," persae. (Let's pretend like zero money has been made and the company is worth nothing.) I just want to wash my hands of it. I don't want to be under liability with a business I have no control over. Any advice? Any direction you could point me in? Huge thanks, -Jack Hi Mike,

I love your web site. Thanks.

I’m in need of some advice. Any chance?

Basically, I co-own a business and now I don’t want to be a part of it any more. It’s a small business which has inherently broken even. I’ve changed locations and pursued a new job and gone a new direction in life. My business partner has decided to dissolve the business in my absence. However, he’s not making any quick moves to do so…nor is he making moves to get me what I need to sign and un-attach myself from the business.

My issues isn’t regarding any “buyout,” persae. (Let’s pretend like zero money has been made and the company is worth nothing.) I just want to wash my hands of it. I don’t want to be under liability with a business I have no control over.

Any advice? Any direction you could point me in?

Huge thanks,

-Jack

]]> By: Mike Michalowicz http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-27263 Mike Michalowicz Mon, 07 Mar 2011 15:03:18 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-27263 Yowser... marriages and businesses rarely seem to mix well. I mean, I have seen some success stories, but not many. I suggest by starting off with determining what you want next. Meaning, don't focus on the fact you want to break the partnership... the question is how do you want to move on. Then once you determine where you plan to be, back track to the current situation and start the negotiations. It is going to be sticky. But the longer you wait, the worse it will get. Yowser… marriages and businesses rarely seem to mix well. I mean, I have seen some success stories, but not many. I suggest by starting off with determining what you want next. Meaning, don’t focus on the fact you want to break the partnership… the question is how do you want to move on. Then once you determine where you plan to be, back track to the current situation and start the negotiations.

It is going to be sticky. But the longer you wait, the worse it will get.

]]> By: Lebron http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-25422 Lebron Fri, 04 Mar 2011 07:23:44 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-25422 hi there i am in my first business with a business partner, the business runs successfully and has been for the past 3 years. now we have decided to open a second business but this time with her husband involved. the first business stays as a partnership and the second business is a company with each of us having 1 unit each. i have also found myself doing most of the hours within the two businesses. i am unhappy with the situation and have decided to go my separate way.... just have to break it to the partners... any advice on how to go about the break up?? hi there i am in my first business with a business partner, the business runs successfully and has been for the past 3 years. now we have decided to open a second business but this time with her husband involved. the first business stays as a partnership and the second business is a company with each of us having 1 unit each. i have also found myself doing most of the hours within the two businesses. i am unhappy with the situation and have decided to go my separate way…. just have to break it to the partners… any advice on how to go about the break up??

]]> By: Mike Michalowicz http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-3579 Mike Michalowicz Tue, 23 Nov 2010 17:22:10 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-3579 @Vinay - He (or she) needs to buy you out of your equity %. One common way is to get a 3rd party valuation (they tell you how much your company is worth) and then your partner buys you for that amount. I would encourage you to start talking openly with your partner now and do everything you can to come to an agreement fast. If lawyers get involved, it can become a real mess. @Vinay – He (or she) needs to buy you out of your equity %. One common way is to get a 3rd party valuation (they tell you how much your company is worth) and then your partner buys you for that amount. I would encourage you to start talking openly with your partner now and do everything you can to come to an agreement fast. If lawyers get involved, it can become a real mess.

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