Leaving a partnership can be a little like getting a divorce. In many cases emotions run high.
Once the decision has been made, it can also be hard to work out where to start with the planning.
Issues you need to consider include:
- What does the Partnership Agreement say about how the exit it to take place?
- What notice needs to be given?
- How will the Purchase Price be determined for the buy-out?
- What happens with work-in-progress (WIP), debtors, creditors, prepayments, etc?
- What will be the tax impacts for the exiting partner and the continuing partners?
- Will the existing partner be under some form of commercial ‘restraint of trade’?
- If the business turns down or loses clients after the exit, will the existing partner be required to pay back some of the Purchase Price?
For a full list of the issues you need to consider, download our Partnership Exit Checklist. Our Checklist contains 10 pages of useful questions that need to be answered and action that needs to be taken.
For further assisting in making the exit a positive experience, call Andrew on 1300 654 590 or email us at firstname.lastname@example.org.