Selling your business share to a partner is one of the most common ownership transfers among small businesses. This mainly happens because they are already invested in the business, know how it operates and understand what its potential for success might be.
A business partner is someone who wants the legal transaction to be as smooth and seamless for both of you. The best thing to do when beginning a partnership it sign an agreement outlining how ownership will transfer, what price should be paid, and terms in which each party has rights during their time together. This way if there are disagreements or concerns at any point down the line they can’t come between your relationship with this person because everything’s been taken care of beforehand.
The Buy-Sell Agreement process is an agreement between both parties to work out the value of a business. This prevents any seller from feeling that their partner on the other side is trying to increase costs in order for them, and only him/her, to make more profit. In addition, there are requirements such as confidentiality agreements or non-compete agreements which protect one party if they were releasing someone with trade secrets.
At Transworld Business Advisors, we understand that selling your share of a business is an important decision. That’s why we’re here to help you through the process in any way possible with our Buy-Sell Agreement service and knowledgeable team members that will guide you every step of the way!