Many people are so excited about the prospect of their new business that they do not take the time to consider what will happen when one partner wants to exit in future years. It is crucial to plan and discuss all aspects of the business and exit strategies should be high on the list of topics to address. As business brokers, we often see several partners that have been running a successful business together for years have varying ideas on how they will each individually exit the business. For instance, what happens if one partner wants to exit and the other does not? What happens if the remaining partner/s do not have the equity to buy out the owner that wants to exit? What happens if one partner becomes too sick to work?
The best advice we can provide is to seek out an experienced solicitor and accountant right from the start. They will be able to discuss what should be arranged to avoid conflict in the future.