PARTNERSHIP BUY-OUT
Partnership Buy-Out | Selling Your Stake | Forced Out | Buying Out Partners | Buying into Partnership
Contact Neufeld Legal PC at 403-400-4092 or Chris@NeufeldLegal.com
When business partners can no longer co-exist with one another, the future of the partnership is seriously jeopardized and potentially irreparably damaged. It is at such junctures in the partnership's operation that it becomes prudent to pursue a more radical option, that being the buy-out of one's fellow business partner(s).
A partnership buy-out represents a definitive break with one's business partners, from which there is no turning back. For once a buy-out is initiated, it is next to impossible to repair the associated effects of instituting the buy-out and seeking to permanently severe the relationship between the partners and effect the distribution of the partnership's capacity and assets.
How the buy-out proceeds is largely dependent upon whether or not there is a partnership agreement in effect and whether or not it has an adequate buy-out mechanism. For with an effective buy-out mechanism, a partnership agreement is capable of facilitating a buy-out arrangement that must be legal adhered to, even though grudgingly. Conversely, where there is no buy-out mechanism, or worse yet, no partnership agreement, it will be necessary to negotiate the terms of the buy-out, with considerable uncertainty as to how the negotiations will proceed and what the results shall be.
Yet, irrespective the circumstances, to successfully implement a partnership buy-out, the legal counsel of an experienced lawyer can prove invaluable. At Neufeld Legal, we work with business partners who are seeking to buy-out their partners or are have been informed that their partnership interest is being sought through a buy-out. For knowledgeable legal representation in the realm of partnership buy-outs, contact our law firm at Chris@NeufeldLegal.com or 403-400-4092.
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