My friend has a general partnership, but they dont have a written agreement. Her partner now wants to be bought out of the partnership, but wants all of the money her put in. The business in question has not done well , and is not worth the 35,000 he wants. What is he entitled to in a buyout? How do we go about buying him out without getting ripped off? The business itself has lost money for the entire time its been open.
      Answer1:This is why every partnership should have a buy-sell agreement BEFORE the business starts to clearly specify how one could get out of the business. Many partners go into the business thinking it will be forever or not nothing could come between their friendship or relationship only to find that relationships could get sour so easily with misunderstandings like these.Talk it with him first. Without an agreement, it is hard to ask him for only the percentage of his contribution, not the initial amount he contributedYou have to ask yourself: is it better to get this person off your hair quickly and get back to improving the business, or drag this out and waste your emotional resources to get this person to agree with youAnd next time, be sure to have a written document