Have you ever bought out your business partner? Or maybe you're negotiating a buy out right now? I'd love to hear from you. Comment below! P.S. watch my video on Why I Don’t Believe In 50/50 Partnerships (And How To Structure A Business Partnership): th-cam.com/video/-sDSh9wrAcM/w-d-xo.html
Very very valuable. Thank you so much for this. This info is the free 12 min equivalent of a couple hours of legal consult at $350 an hour! I learned the hard way as well- my last business was a marital asset that got divided up in court and then the absence of an operating agreement turned into court-appointed accountants and mediators (which were expensive) doing a business valuation, and the brand new family law judge settling with his idea of what was fair. Your video mentioned a buyout with a lump sum up front and a 12 month payment plan on a super huge number. My half of the martial business was a very small fraction of that that the judge gave my ex 5 years to pay off. So the monthly payments were great, they basically equalled my monthly salary, but it wasn't enough money up front for me to go and start a new business. And oh yeah, for the first time in my states history I got ordered to a non-compete by the judge for 5 years in the same area... Which is where I owned my home. That turned into a 40 minute work commute. Regardless, the couple of thousand we saved on getting someone to help us with the operating agreement became a legal battle that cost roughly 120k in court. So I always tell people that the operating agreement is important because of the "exit plan" it contains: how the business is valued, who does it, what the payment terms would be etc. But you added tons more value to what I learned in court and from the lawyers and accountants. THANK YOU SO MUCH, quickly watching as many of your other videos I can find.
Good job man ,you did what you had to do..ofcourse I know it took some long consideration and worry if it's the right choice you making. But I learn from your experience..because about to make that same move..my business is 5 years. With this business partner its killing me, physically emotionally mentally...I just don't know how to make the first move but you just some great ideas..Respect. 🤜
Hi Chandler, was wondering if you buy a business partner out and have a negotiated agreement for a guaranteed payment monthly for approx 3 years, do you just cut them a check? Since I am taking it out of profits from the business, what is the tax implications on their part and my part?
If just trying to start a business with your partner but you have not done anything with your business yet get started.But he not working out.what do I need to do.yes we do have a business agreement do just follow that agreement when we haven’t done everything with the company and have not started anything.
2 months into business, and my partner took a turn on me. He wants to depart from the landscaping business we bought together. During the business, I discovered he had a habit of turning on people (even clients) and eventually, I was next in line. Then he turned on me. We both owe 6k. After this process, I will likely be 10k in debt soon.
im currently in a situation where i worked in a restaurant based setting for 6 years with 2 partners and was brought to me that they want to sell the business. im willing to take on the business and buy each one of them out but would rather say am short of funds, what would be your recommendation for me or just someone that presents a skill that can run the business but is short of funds for a down-payment. currently hav a good credit score, no debt, just turning 21 years old with a few investments much appriciated and hope this brings interest.
Thanks Jimmy! Looks like you checked out / commented on my other video about why I don't believe in 50/50 partnerships. That'd be most helpful here. Subscribe to the channel & check out other videos here: bit.ly/chandlerYT
But what is the process of filing documents with the IRS or SCC? I can't find any videos on this. I am taking my partner's 50% equity (no buyout, just transferring from a 50/50 partnership to a SMLLC). I'm in Virginia. Do I just file a new articles of organization with the state? We don't have an operating agreement.
I have a question. Let’s say there are three partner who had started their business with the equal share holding and than after 5 years, they have to add any new partner with the equal amount of share holding means all the four partners (three old partners and 1 new partner) will have 25% of the company. So how to decide the worth that what value that new member has to pay to the 3 old existing partner for getting 25% of equity? Please answer this question Thanks in advance.
Good question. I would think long and hard before adding a 4th partner and instead hire them as an employee with the ability to earn into a profit share
I have a question that I hope you can help me with. My business partner wants to be bought out but the amount that she is asking for is ridiculous so I gave her my offer. My question is this: If we cannot agree on the amount can she take me to court to dissolve the business? I do not by any means want to dissolve this business because this business was my idea and my heart poured into it. Please advise. Thanku
@@ChandlerBoltOfficial Unfortunately there is no partnership agreement when we started I invited her to be a part of it because we were good friends and had years of working together. When we realize the importance of a partnership agreement I’d try to get her to sign one and she refused at that point. But she keeps threatening to dissolve the business and we are both equally 50-50 partners. I feel that she wouldn’t care if it is dissolved because she has already begun the process of a competing agency I on the other hand put my heart and soul into this one so I don’t want to lose it.
What kind of financial statements are needed (income statement and balance sheet) are needed aside from the ones I mention? I wonder if income statement and balance sheet is enough to support a business valuation or are there other financial reports needed? Thanks!
Wow this was sad but also very cool. Thanks for the information. I wonder if you guys are still friends and how you felt about all of this. Have you moved on or is it still a sore spot?
Have you ever bought out your business partner? Or maybe you're negotiating a buy out right now? I'd love to hear from you. Comment below!
P.S. watch my video on Why I Don’t Believe In 50/50 Partnerships (And How To Structure A Business Partnership): th-cam.com/video/-sDSh9wrAcM/w-d-xo.html
Very very valuable. Thank you so much for this. This info is the free 12 min equivalent of a couple hours of legal consult at $350 an hour! I learned the hard way as well- my last business was a marital asset that got divided up in court and then the absence of an operating agreement turned into court-appointed accountants and mediators (which were expensive) doing a business valuation, and the brand new family law judge settling with his idea of what was fair. Your video mentioned a buyout with a lump sum up front and a 12 month payment plan on a super huge number. My half of the martial business was a very small fraction of that that the judge gave my ex 5 years to pay off. So the monthly payments were great, they basically equalled my monthly salary, but it wasn't enough money up front for me to go and start a new business. And oh yeah, for the first time in my states history I got ordered to a non-compete by the judge for 5 years in the same area... Which is where I owned my home. That turned into a 40 minute work commute. Regardless, the couple of thousand we saved on getting someone to help us with the operating agreement became a legal battle that cost roughly 120k in court. So I always tell people that the operating agreement is important because of the "exit plan" it contains: how the business is valued, who does it, what the payment terms would be etc. But you added tons more value to what I learned in court and from the lawyers and accountants. THANK YOU SO MUCH, quickly watching as many of your other videos I can find.
Good job man ,you did what you had to do..ofcourse I know it took some long consideration and worry if it's the right choice you making. But I learn from your experience..because about to make that same move..my business is 5 years. With this business partner its killing me, physically emotionally mentally...I just don't know how to make the first move but you just some great ideas..Respect. 🤜
Hi Chandler, was wondering if you buy a business partner out and have a negotiated agreement for a guaranteed payment monthly for approx 3 years, do you just cut them a check? Since I am taking it out of profits from the business, what is the tax implications on their part and my part?
If just trying to start a business with your partner but you have not done anything with your business yet get started.But he not working out.what do I need to do.yes we do have a business agreement do just follow that agreement when we haven’t done everything with the company and have not started anything.
2 months into business, and my partner took a turn on me. He wants to depart from the landscaping business we bought together. During the business, I discovered he had a habit of turning on people (even clients) and eventually, I was next in line. Then he turned on me. We both owe 6k. After this process, I will likely be 10k in debt soon.
im currently in a situation where i worked in a restaurant based setting for 6 years with 2 partners and was brought to me that they want to sell the business. im willing to take on the business and buy each one of them out but would rather say am short of funds, what would be your recommendation for me or just someone that presents a skill that can run the business but is short of funds for a down-payment. currently hav a good credit score, no debt, just turning 21 years old with a few investments much appriciated and hope this brings interest.
What kind of restaurant? Is it a franchise?
Your video is really helpful, I'm going through this process now do you have any more videos? Thanks!
Thanks Jimmy! Looks like you checked out / commented on my other video about why I don't believe in 50/50 partnerships. That'd be most helpful here.
Subscribe to the channel & check out other videos here: bit.ly/chandlerYT
But what is the process of filing documents with the IRS or SCC? I can't find any videos on this. I am taking my partner's 50% equity (no buyout, just transferring from a 50/50 partnership to a SMLLC). I'm in Virginia. Do I just file a new articles of organization with the state? We don't have an operating agreement.
How did you handle the taxes being you sold in the middle of the year?
Just like you would anything else
Great video Chandler, Thanks for sharing your knowledge and experience!
How to buy a partner in a business without any profit?
The good news is the valuations should be pretty low if there’s no profit. You’ll either get them to seller finance the buyout or get outside funding
I have a question. Let’s say there are three partner who had started their business with the equal share holding and than after 5 years, they have to add any new partner with the equal amount of share holding means all the four partners (three old partners and 1 new partner) will have 25% of the company. So how to decide the worth that what value that new member has to pay to the 3 old existing partner for getting 25% of equity?
Please answer this question
Thanks in advance.
Good question. I would think long and hard before adding a 4th partner and instead hire them as an employee with the ability to earn into a profit share
How do you actually get rid of a business partner when they never put any money into it ?
Buy them out
I have a question that I hope you can help me with. My business partner wants to be bought out but the amount that she is asking for is ridiculous so I gave her my offer. My question is this: If we cannot agree on the amount can she take me to court to dissolve the business? I do not by any means want to dissolve this business because this business was my idea and my heart poured into it. Please advise. Thanku
Are you majority owner? And/or do you have an operating agreement? That makes a huge difference.
@@ChandlerBoltOfficial Unfortunately there is no partnership agreement when we started I invited her to be a part of it because we were good friends and had years of working together. When we realize the importance of a partnership agreement I’d try to get her to sign one and she refused at that point. But she keeps threatening to dissolve the business and we are both equally 50-50 partners. I feel that she wouldn’t care if it is dissolved because she has already begun the process of a competing agency I on the other hand put my heart and soul into this one so I don’t want to lose it.
@@ChandlerBoltOfficial as a minority owner what rights/leverage do you have? Can you still get a lawyer and/or mediator?
What kind of financial statements are needed (income statement and balance sheet) are needed aside from the ones I mention? I wonder if income statement and balance sheet is enough to support a business valuation or are there other financial reports needed? Thanks!
That’s mostly it
Cash flow statement....
I want to sell my 50% but the partner won’t buy or approve the sale to someone else ☹️
That’s tough. Do you have an operating agreement?
Nope 🤦♂️
How to calculate a BUY OUT from a Business partner ownership of 50/50 LLC. .. but for sales/ ravanues is 50/30..The Business makes about 150k a year.
Did you watch the video?
I am in the process of this right now would love to speak with you
Wow this was sad but also very cool. Thanks for the information. I wonder if you guys are still friends and how you felt about all of this. Have you moved on or is it still a sore spot?
You nailed it! Thank you for this.
I needed that!! thank you :)
👊
any recommendations how to find an mediator?
What if there is no written agreement??
I talk about it in the video / what I did when I was in that scenario :) mediation or negotiation is the likely next steps
Then god help him!!
Great name.
Thanks.
Great Video!
thank you! Biggest takeaway?
Who was the mediator? To you have a link?
Do you **
I think maybe I worked with the same business coach mediator ...
In San Diego? Who is it?
Chandler Bolt - The 7-Figure Principles Show Michel zelnick
@@cffmailbox Yep! He's great. Tell him I said hey. How'd you find this video?
Hi can you please email me I’m kinda in the same situation of buying out my business partner