Ending a partnership can be messy, but there are options to make the process go more smoothly. Depending on your agreement and the terms of your contract, you might have a few different avenues available.
There are a couple of things to think about when your business partner tells you that they want to leave the company.
Can you buy out their share?
One option to resolve the situation is to buy out your partner’s ownership stake in the business. This allows you to take full control and continue operating without their involvement. You will need to agree on a fair valuation and timeline for the buyout. Be sure to get the details in writing to protect all parties and review your financial standing in detail to ensure that you make the investment.
Can you find a replacement partner?
Another possibility is to find someone new to take over your partner’s role. This brings in fresh ideas and lets you split ownership with someone who is fully committed. Vet potential partners thoroughly. Look for someone with a shared vision and complementary skills.
Sell the business
If you would rather not continue running the business, selling it could be the solution. This may allow you both to walk away on good terms rather than trying to continue working together. Statistics show that 44% of businesses are looking for partnerships to foster greater innovation and bring new ideas.
Hire experienced professionals to determine the company’s market value and manage the sale process. With preparation, selling a business can happen smoothly and quickly.
While a partner’s departure can feel like a setback, it does not have to derail your business. With care and forethought, you can develop a plan that protects the company’s value and sets you up for future success, with or without your original business partner.