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CMTII
08-01-2014, 03:18 PM
Hey all! Im in a situation. I would like to sell my company, but I have a partner who doesn't want to sell. He doesn't do anything, but just sit around all day when we should be out selling and pushing our product line. That is what we had agreed upon. I took care of all the media, online things and such, emails, online orders, and that sort of thing because selling isn't what I do. I'm not good at it, and I don't want to burn bridges going out consistently and not being able to close any sales. I could use some help right now. Any ideas on what I should do?

Freelancier
08-01-2014, 03:22 PM
what's your partnership agreement say about selling your shares?

CMTII
08-01-2014, 03:48 PM
I own everything on paperwork, all of our investors are personal loans through him. We have profit revenue but only from my end. He believes that he owns the entire company being a superficial 51% share holder. What I mean by that is its not on paper.

Paul
08-01-2014, 04:05 PM
It is all about the paperwork that determines who officially owns the company. Basically the question is do you need his permission to sell.

The loans he may have made is a separate issue. Are the loans to the company only, or do you have some personal liability, or do the loan documents restrict the sale of the business?

With the little info you gave, other than dealing with the loans, it sounds like you can go ahead and sell.

It may certainly be more complicated than that but it seems you have all the leverage, he's the one with money at risk, not you. Based on what he doesn't do for the business there is no business without you. Force his hand.

CMTII
08-01-2014, 04:59 PM
It is all about the paperwork that determines who officially owns the company. Basically the question is do you need his permission to sell.

The loans he may have made is a separate issue. Are the loans to the company only, or do you have some personal liability, or do the loan documents restrict the sale of the business?

With the little info you gave, other than dealing with the loans, it sounds like you can go ahead and sell.

It may certainly be more complicated than that but it seems you have all the leverage, he's the one with money at risk, not you. Based on what he doesn't do for the business there is no business without you. Force his hand.

I own everything on paperwork, everything is in my name. 100% its how would I go about selling this without him knowing. How can I do this low key?

zachariahlogan
08-02-2014, 12:27 PM
Who is the CEO?
You or him. Or are there more players?

ActionMan
08-03-2014, 01:30 PM
Since he put in 100% the money, contract or not, I would would feel ethically and morally obligated to repay him his investment at the very least so that he can return the personal loans that he took on behalf of your company.

Was your agreement that he would be doing the selling? Perhaps all you need to do is talk to him and ask if he will sell the product. He obviously believed in you and your product to invest the money. Now that you have the money and a profitable product line you want to get rid of him without even telling him what you intent to do?

Maybe it's me but your side of the story seems to lack credibility.

Harold Mansfield
08-03-2014, 03:46 PM
From the way it sounds, you want to sell the company because you don't feel like he's pulling his weight as agreed upon.
Seems to me you've skipped a step and that is to sit down and discuss how you feel with him, and find out why he doesn't feel like he needs to continue doing sales as agreed upon.

If you can't come to some kind of understanding to turn things around, then offer to buy him out or him to buy you out.

CMTII
08-03-2014, 09:58 PM
Since he put in 100% the money, contract or not, I would would feel ethically and morally obligated to repay him his investment at the very least so that he can return the personal loans that he took on behalf of your company.

Was your agreement that he would be doing the selling? Perhaps all you need to do is talk to him and ask if he will sell the product. He obviously believed in you and your product to invest the money. Now that you have the money and a profitable product line you want to get rid of him without even telling him what you intent to do?

Maybe it's me but your side of the story seems to lack credibility.

No, that's not the case, the money that he is putting in, isn't for the company, like he says it is. It goes to him, not to me, not the company, him. Yes the agreement was that he would be doing the selling since I am not a sales person. We have had a profitable product line since we started in January, its just since no one is out putting our products into different places, the only profit is made from people placing orders through us online, which he gets his percentage and I receive mine, and the company receives its share as well. If that makes sense.

Paul
08-03-2014, 11:57 PM
I'm not sure what you are saying about personal loans, investors, your partner. What does your company owe, and to whom. Is it loans or equity?

If you have a buyer just sell it. Pay back what you need to, or let the loans/equity liability pass on to the next owner. i don't know about doing it without him knowing but why do you care about that? He'll know soon enough.

Freelancier
08-04-2014, 08:29 AM
The whole proposition seems squirrely. The explanations don't make enough sense.

My recommendation is to seek the counsel of a local attorney before you make a bad mistake that you never saw coming.

GenX
11-15-2014, 01:02 PM
A few things you can do.

1. discuss how you feel with your partner

2. Get legal counsel

3. use this as an opportunity to learn to sale

4. use all three of these and be patient while you improve your situation.

MarkPoppen
11-17-2014, 01:30 PM
Whoa, this is confusing.. So, he's the financial guy, but you own everything, yet, he doesn't do anything, because he probably feels "I'm putting in the money, so I don't have to".

Communication is key. Talk to your partner, and ask him about how he sees the future.

LianaCCB
12-08-2014, 03:49 PM
You can offer to buy him out and get someone who will actually do the work you need, or sell it and pay him back like Paul said. If he's not willing to budge or cooperate or even meet you anywhere near the middle, there's only so many options while still attaining your end goal.

etobicoke_woj
12-15-2014, 02:21 PM
If you are the 100% owner of the company, and your 'partner' is not anywhere on the documentation AND there is no money that was loaned to either you or YOUR company....

I don't see the issue in selling and walking away. Forget your friendship as it's lost now anyway...happens in business partnerships unfortunately.

However, if you or the company owe him money for whatever is business related then I would pay back from the proceeds of the sale so you're clear and he can't go after you with any sort of legal action (difficult with no paper claim to the business/loans).

kimoonyx
12-16-2014, 12:03 AM
Forget your friendship as it's lost now anyway...happens in business partnerships unfortunately.

Hell yeah it does! Never again will I take a partner. EVER... hell I have franchise developers contacting me right and left and I am even scared to entertain them as I was taught a hard lesson not to ever again give up even I piece of my company. I own 100% and it will stay that way for ever.

smallbizfinancier
01-08-2015, 05:20 PM
Is there still a way to amicably reconcile? Remember, partners are like marriages without love. No that when going into business together and always keep the adage in the front of your cortex.