How to sell a co-owned business?

1gavinr

If a married couple co-own a small business and 1 of the couple wants to sell the business but the other party doesn't then how could the business be sold?

Financially it would be better if the business was sold off but trying to make the partner see sense is proving very difficult.

Any suggestions / ideas would be welcome

Thanks

toddle2u

Whats in the shareholders agreement regarding this scenario?

phill99

toddle2u wrote: »

Whats in the shareholders agreement regarding this scenario?

You are assuming its a Limited Company. It could easily be a partnership.

Savvy_Sue

I don't think it matters whether it is a partnership or a ltd co: in an ideal world there would be a written agreement, drawn up at the start, which sets out who gets the casting vote in an situation where there isn't agreement.

Without such an agreement, it's probably down to persuasion. If there's an accountant, would their advice help?

paddyrg

Married couple, one wants out of the business, one doesn't. I'm sure both have good reasons for their positions, but if the relationship and business are so close, out of one may mean out of the other too - for instance if the one who wants to carry it on has to take a loan to buy out their wife/husband I can't see it being all chuckles and roses over the breakfast table.

Mistral001

The OP can make an offer to by the other partner out and then sell the business. That is the only way I can see of the OP selling the business in the circumstances described. If the business is worth as much as the OP thinks it is then everybody should be happy.

Savvy_Sue

Mistral001 wrote: »

The OP can make an offer to by the other partner out and then sell the business. That is the only way I can see of the OP selling the business in the circumstances described. If the business is worth as much as the OP thinks it is then everybody should be happy.

Your advice is sound, however it's the OP's other half who doesn't want to sell. So if the other half won't allow the OP to buy out, what options remain? Obviously they could buy out the OP, but I'm guessing there's a back story ...

paddyrg

I think I have found the words I couldn't quite find earlier...

This isn't a business question, it's a relationship question, with the business sell-off being much like any other shared asset (eg I want to move to xyz vs I like it in this house, etc). If the decisions are purely financially motivated, there is only one clear answer either way once the year-end books are done, and let that be the guide. If, however, this is actually an emotional decision with (as Sue phrased it) back-story, then I suspect relationship advisors/counselling may help uncover what the business question is masking. Pure speculation though on my part, trying to read between the lines a bit! OP, don't be offended if I'm off the mark, I just want to see the question for what it is and test a few assumptions!

1gavinr

It's a partnership and not a Ltd company.

1 of the partners runs the business and works there on a day to day basis and the other partner is a "silent" partner who has put the money up for the business to have started in the first place.

The "silent" partner is the 1 who wants the business sold but the OP is the one who wants to keep the business running.

With having a business, married and family life it's going to be better in the long run if the business is sold on but trying to get the OP to see that is proving difficult.

Thanks

paddyrg

A put in money, B does the work. A wants rid, B wants to keep. Is that it?

Can B make the business viable without continued cash from A? If so, B buys A out from the operating profits and A stops interfering. If A keeps on investing in a loss-making business then B has to get a grip if it is supposed to be a business not a hobby.

1gavinr

In a nutshell that's it. The business has been running 2 years now and it breaks even. There isn't much money being made above paying wages and bills so it's looking like the best option is to sell rather than staying open just to break even every week.

While 1 of us sees things financially for what its made to date, the other sees things as a possibility of being able to make money in the future.

Trying to make someone see sense with what has been achieved to date and not what could happen in the future is extremely hard.

paddyrg wrote: »

A put in money, B does the work. A wants rid, B wants to keep. Is that it?

Can B make the business viable without continued cash from A? If so, B buys A out from the operating profits and A stops interfering. If A keeps on investing in a loss-making business then B has to get a grip if it is supposed to be a business not a hobby.