About selling my percentage in a business

DWQA QuestionsCategory: Business QuestionsAbout selling my percentage in a business
Jimmy asked 1 year ago

I have a 25% piece of a business. There is another partner who has 75%. I put in money and he put in money. The business is a lawn care business. I want out so I can get a job because the business isn\’t making very much money. I only want my money back. My partner says no. He said he will buy me out for one dollar to make it legal. How can I just get my money back? We never made a partner agreement. But the equipment is worth about $15000. I put in $4500. What can I do?

1 Answers
Best Answer
Chris Reich Staff answered 1 year ago

You cannot force your partner to buy your interest in the business but if he doesn\’t want it for your asking price, you can find another buyer. Since there is no partnership agreement, you won\’t need his approval but it\’s best to get it so the new partner comes in with a welcome. If the business isn\’t profitable, keep in mind that the entire value is based on the equipment. Using your numbers, the equipment is worth $15,000. If we take 25% of that, it comes to $3750. That\’s today\’s value of your interest IF the numbers are correct. Equipment depreciates quickly so it may be less. You might reach an agreement with your partner that allows you to get a job while keeping your stake and taking a lesser amount of profits. Like this: You get a job, help the business occasionally, take 15% of profitinstead of 25%. He might go for that and you\’d get more money back in the long run. Chris