G
GroovyRuth
Guest
What is the name of your state? NC
I have been in business with a partner nearly 6 years. We are split 50/50, have a partnership agreement, but no exit strategy or buy-sell agreement. We did very well for a while, but things declined after 9-11 and the business will no longer support both partners profitably. We have accummulated about 80,000 in debt at this point. The business is an event planning business and I'm not sure how to value it, but $100,000 to $150,000 seems fair based upon receivables.
Anyway, for financial reasons, I need to leave the company to take a well-paying corporate job. What is my obligation to the company? I don't want to leave anyone in the lurch, but I also can't afford to immediately begin paying back "my half" of the debt. I've also put a lot of sweat equity into the company, more than my partner (although I don't know if she feels that way) and wonder if that counts for anything now that I'm leaving.
My question is what are my exit strategies? Does she have to buy me out? Do I have to pay the debt? Are there other, less divisive options? Any thoughts would be appreciated. Thanks!
I have been in business with a partner nearly 6 years. We are split 50/50, have a partnership agreement, but no exit strategy or buy-sell agreement. We did very well for a while, but things declined after 9-11 and the business will no longer support both partners profitably. We have accummulated about 80,000 in debt at this point. The business is an event planning business and I'm not sure how to value it, but $100,000 to $150,000 seems fair based upon receivables.
Anyway, for financial reasons, I need to leave the company to take a well-paying corporate job. What is my obligation to the company? I don't want to leave anyone in the lurch, but I also can't afford to immediately begin paying back "my half" of the debt. I've also put a lot of sweat equity into the company, more than my partner (although I don't know if she feels that way) and wonder if that counts for anything now that I'm leaving.
My question is what are my exit strategies? Does she have to buy me out? Do I have to pay the debt? Are there other, less divisive options? Any thoughts would be appreciated. Thanks!