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Bringing in a Partner

(@Anonymous)
New Member

We are contemplating bringing in a Partner for the business the challenge we have is how do we calculate how much of the business the Partner will own and the worth of the Partner's share and what to put in a partnership agreement - any thought would be helpful

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Topic starter Posted : 08/11/2006 1:01 pm
(@Anonymous)
New Member

Re: Bringing in a Partner

In terms of the value of the business you should look at the thread that is below which talks about various valuation methods:

http://www.smallbusinessforum.com/f10/multiple-business-7002.html

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Posted : 10/11/2006 11:01 am
(@Anonymous)
New Member

Re: Bringing in a Partner

One of the terms you should consider putting in your agreement with the partner is a reciprocal buyout clause to make sure you are fairly pricing the piece of the business. The way it works is like this:

If one of you wants to get out of the business or sell your share, you first go to the other partners and ask them how much they will pay for your share. For example, if they say $100 per share you can refuse but have the option of also buying their shares for $100 per share this way they will make a reasonable offer because they would not want to be bought out for small amount.

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Posted : 12/11/2006 10:56 am
(@Anonymous)
New Member

Re: Bringing in a Partner

The most important thing you can do is to put a formal contract together that stipulates the terms. Make sure you spend most of the time on what happens if the company dissolves or if one partner wants to leave. It is not easy to talk about but it is better to do it now than wait. We had a partner leave us and because we spent the time it was a smooth transition.

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Posted : 14/11/2006 12:36 pm
(@Anonymous)
New Member

Re: Bringing in a Partner

I would avoid bringing in a partner if I was you. Think about it can you find someone who will work the same hours as you - what if they don't and lose interest in the business? What if they want to sell their portion of the business and you cannot afford to buy it? There are all kinds of problems with partnerships I think there has to be a clear leader or owner for a business to succeed.

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Posted : 24/04/2007 12:13 pm
(@Anonymous)
New Member

Re: Bringing in a Partner

Courier;31563 wrote: I would avoid bringing in a partner if I was you. Think about it can you find someone who will work the same hours as you - what if they don't and lose interest in the business? What if they want to sell their portion of the business and you cannot afford to buy it? There are all kinds of problems with partnerships I think there has to be a clear leader or owner for a business to succeed.

I agree you do not tend to think of these things when things are going well but when they turn it can be like a cancer on the business

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Posted : 27/04/2007 10:04 am
(@Anonymous)
New Member

Re: Bringing in a Partner

i think it,s great information thanks.

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Posted : 16/05/2009 7:45 am
(@Anonymous)
New Member

Re: Bringing in a Partner

i currently own my own business but I am looking at bringing on a partner. i currently have most of the equity and this person does not have the funds to buy into it. i want us to be equal partners though. he will also draw a larger salary from the business than i will. can you give me some advice to how this might work or if it is even possible.
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http://www.officesupportline.com/Easter-Eggs-and-Tobacco-with-Excel-2000/Y2009-10-08.htm

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Posted : 21/10/2009 12:46 pm
(@Anonymous)
New Member

Re: Bringing in a Partner

Courier;31563 wrote: I would avoid bringing in a partner if I was you. Think about it can you find someone who will work the same hours as you - what if they don't and lose interest in the business? What if they want to sell their portion of the business and you cannot afford to buy it? There are all kinds of problems with partnerships I think there has to be a clear leader or owner for a business to succeed.

If it were me all this would be stipulated in my contract. but great points...

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Posted : 22/10/2009 4:54 am
(@Anonymous)
New Member

Re: Bringing in a Partner

Hello to all

1. They must be smarter than you are in their respective area of expertise. Heck, they can even be just plain smarter than you and increase your perceived braininess! Michael Dell hired smart people, and the people that Bill Gates brought on were pretty darn smart, too.
2. They must communicate well. Observe their communication and conflict resolution style. The last thing you want is to beg someone to communicate with you when things don’t go as planned. If they don’t live in the same city, you can’t show up on their front door!
3. Spend time getting to know them. Watch them and see how they behave online and with other people. If you watch someone online (e.g., read their blog, tweets, comments) for a couple of months, you can make a reasonable assessment of their personality and reputation.
4. Check each others’ references. You don’t want something to surprise either one of you. References usually say great things, but knowing what questions to ask and what to listen for gives you 80 percent of the information you need.
5. Take care of necessary paperwork. Getting a lawyer involved is a necessary evil. Agreements should be in place to protect both of you. If you assessed item No. 2 above correctly, then agreements can always be amicably adjusted to reflect new information.

Thanks for sharing
Have a nice day

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Posted : 31/10/2009 3:46 am
(@Anonymous)
New Member

Re: Bringing in a Partner

Hello friends

Bringing in a partner you follow this some suggestion.
1. How much percentage should I offer him?
2. Should I ask for a capital investment? What if he doesn't have any $ to invest?
3. How do I protect myself if it doesn't work out?
4. How can we set his salary ( i can't afford his market value)
Any insights would be greatly appreciated. Also, if any books exist that can provide additional guidance, let me know.

Thanks to all

scada

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Posted : 30/12/2009 5:06 am
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