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Buying Into A Business

 
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Old 01-12-2014, 11:00 PM   #1
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Buying Into A Business


Well I'm in the process of buying into an existing business. A tree farm to be precise. Probably working my way into over the coarse of three or four years. labor in exchange for partnership. Does anyone here have any experience with partnerships and the legal/financial end of it?
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Old 01-13-2014, 03:04 AM   #2
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Re: Buying Into A Business


My experience is it rarely works

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Old 01-13-2014, 05:09 AM   #3
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Re: Buying Into A Business


Have the contract looked over by a lawyer---you do have a contract?
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Old 01-13-2014, 07:28 AM   #4
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Re: Buying Into A Business


In my observation of patnerships, they don't work out. I'm not saying it is impossible. I would guess it will last for a few years and then someone will get mad and quit. I think I just descirbed marriages also.
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Old 01-13-2014, 05:46 PM   #5
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Re: Buying Into A Business


analyzed and considered the relationship end of it. We're good there. Just trying to get my mind wrapped around the logistics of it.
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Old 01-13-2014, 05:57 PM   #6
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Re: Buying Into A Business


Your best bet is to get a good lawyer to write it up for you. Make sure you both go into it knowing what you want as far as terms and conditions, including voting rights, ownership percentage, terms upon one party leaving, etc...A good lawyer should be able to provide advice as to the necessary things you'll need to address, so you just need to fill in specifics. (Based upon my recent experience forming a partnership)
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Old 01-13-2014, 05:59 PM   #7
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Re: Buying Into A Business


My father had a partner for many years, it went very well. One was office manager the other was field supervisor. They even switched rolls on occasion. Both guys new each other and worked side by side for years before they jumped in and put everything they owned into it. Fortunately it was very successful. They had a large yard several trucks and a full office staff. What I will say is, this situation was considered rare. It usually doesn't work out like that. My father and his partner knew each other's positions and just got out of each other's way and didn't micromanage one another.
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Old 01-13-2014, 07:31 PM   #8
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Re: Buying Into A Business


there's only a few reasons why an owner would give up part of their business via "sweat equity"..

one, the person can bring in a good following of clientele that will grow the business, another, the business is broke and can only survive with a good worker for cheap.

no sane business owner brings a partner into a thriving business.
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Old 01-13-2014, 08:38 PM   #9
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Re: Buying Into A Business


Quote:
Originally Posted by amreiley View Post
Your best bet is to get a good lawyer to write it up for you. Make sure you both go into it knowing what you want as far as terms and conditions, including voting rights, ownership percentage, terms upon one party leaving, etc...A good lawyer should be able to provide advice as to the necessary things you'll need to address, so you just need to fill in specifics. (Based upon my recent experience forming a partnership)
Agreed.

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Last edited by CarpenterSFO; 01-14-2014 at 09:06 AM.
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