Have you faced the situation where you want to sell the business, but your partner refuses to do so? It is a common problem,which is faced by most of the partnership businesses. When your business partner rejectsthe idea of selling the business, it may put you into a predicament. When you run a partnershipfirm with one or more partners and all partners agree to sell the business, there would be no problem. There you can use popular marketplaces like Business for Sale Ontario to sell your business. But if few partners want to sell, and others say no, the trouble is inevitable. So what you and your other partners could do in that case is:
Plan Ahead of time
If you include a buy-sell clause in the partnership agreement, your partners usuallywill not be able to refuse the selling of the business. These articles and clauses comprise of the terms and conditions regarding how things will proceed in case one of the partners wants to sell the company. You can set all the terms and conditions beforehand so that in future one or more partners won’t give unnecessary troubles to other partners when it comes to selling the business. When you are ready to sell you can go to marketplace like Business for Sale Ontarioand list your business there.
Change the Deal
Another thing you could do is ask your partner if he or she would like to discuss a different deal. For example, you can reduce your participation in the company in order to avoid conflicting situations, or you and your partner can take the help of a third party to negotiate new terms between you and your partner. You can also part ways by splitting up the business and then sell the business if you want to.
Sell Your Share in The Partnership Firm
If your business is running in losses, youmay want to bring changes in the structure of the company or even sell the company. However, if your partners with higher percentages of share do not agree, and then you may perhaps sell only your share in the company. Although it will allow you to get out of the messy situation, it may also mean that you suffer losses. You might be able to use business marketplaces like Business for Sale Ontario to sell your shares.
Courtroom could be your last option
If your partners do not want to sell or negotiate and you do not want to sell your shares either, you can file a court case against your partners. There it will be court’s decision how to end the partnership. The decision will also include how much each partner will receive in case the firm is sold. However, you should go to the court when you have exhausted all other options as it involves legal charges, and any payment, that you may be obliged to pay to your partner. One of the worst things that can happen is that you may have to sell off business assets to meet the terms of the order issued by the court. Selling the business assets can leave your business in a worse situation than you expected.
Even after the partnership is dissolved, you would still have to pay the loans and other financial debts as the firm’s loans might be based on personal assets or guarantees. And the bank may want an immediate payment of a portion of the loan if the status of the business is changed. If you have no other option, you can always go to online paces like Business for Sale Ontario to find the best deals that may convince all your partners to sell the business.