Partnership and Succession
For many business owners, partnership is often the path chosen for business ownership.
Partnership is both a contractual relationship and a financial commitment.
To get the best outcome the following issues should be addressed:
- Determining the relative interests and the price
- Knowing the future arrangements for buying an increased share
- Settling the partnership arrangement and the formal agreement
- Ensuring the cash flow works
- Finalising the operating structures
- Securing the funding
- Organising the appropriate approvals
- Liaising with the lawyers
- Ensuring that everything has been finalised.
A key element of a healthy business partnership is to clearly define the business’s plans in the event of the departure of a partner(s) or the sale of the business. Knowing in advance how the business will be valued and financial interests sold will ensure the business, and bottom line, will not suffer as a result of conflict. At GA we have helped many businesses plan for this transition to ensure an equitable outcome is achieved for all involved.
If you would like to further information about partnerships and succession, please call the Guild Accountants team on 1800 101 296 or email us at enterprise@guildaccountants.com.au.
