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All partnerships end eventually. There are a variety of reasons. An inability to agree on the direction of the business. The desire of one partner to retire, or move on, or take on a new opportunity. Not all of the reasons are contentious, but the process of buying out a partner can become contentious, even if your partner is willing to sell. They're also complex legal processes. Here are the steps you'll need to take to get the job done. Figure Out Financing You need to make sure you are going to have the resources to complete the buyout. The last thing you want to do is negotiate a buy-sell agreement only to find out you can't live up to your end of the bargain. There are multiple methods, including self-funding the buyout, applying for an SBA loan, getting a bank loan, or trying alternative lenders. Get Legal Help Both you and your partner need your own attorneys. Both attorneys should have a grounding in New York mergers and acquisition laws. Even if the buyout is amicable, you'll be creating legally binding agreements that determine the future of the business and its assets. Examine Existing Agreements Look to your existing partnership agreement. For example, you may be able to dissolve the partnership without buying out the other person, though in many cases this would also close the business. You also need to examine your existing operating agreement to see if there are any terms within these existing contracts that will impact your buyout. Hire a Valuation Expert Many partnership buyouts go sour due to disagreements about what the business is actually worth. These disagreements are avoidable. You need to get a certified valuation expert to get the current value of your company so you can make a fair offer and so both you and your partner are on the same page. This can reduce disagreements as the worth of the business, and thus the partner's share, will be right there in black and white. Negotiate the Buy-Sell Agreement The buy-sell agreement is a legal agreement and a binding contract, and outlines the responsibilities of both parties. For example if you want to make sure your business partner doesn't just turn around and start a competing business, that would need to be in the buy-sell. If your partner came up with the logo and slogan you'll need to specify that you'll retain the right to use them. Try to stay as amicable as possible. Try to be fair to your partner, even if the relationship has gone sour. Be prepared to negotiate. Try to keep emotion out of the process. Final Steps Determine whether you need to change your business structure after completing the buyout. Your attorney can help with this. Get Help Today No matter where you are in the lifecycle of your business, the attorneys at Stone, Studin, Young, and Nigro can help. Contact us to set up a consultation if you need an attorney to help you negotiate a buyout. See also: When Do You Need a Long Island Business Lawyer? Business Divorce and Owner Disputes Corporate and Business Law

Here's the short answer: you need a business lawyer long before you run into major legal problems. In fact, wise business owners will make room in their budgets for hiring business attorneys right at the formation of their entity. For initial set-up, you may only need an hour or two of the attorney's time. You May Need a Business Lawyer at Formation If you plan to start an LLC with a partner, form a corporation, or form an S-Corp, B-Corp, or a C-Corp you will need help choosing the appropriate structure. You will also need to get partnership agreements drafted, and that means that both you and your partner should be getting advice from a business lawyer. If you are in a highly regulated business, require a business license, or will be using contracts on a regular basis then a business attorney can help you with all of these things. An attorney can advise you on the regulatory requirements governing your business. They can also custom-craft your contracts, ensuring that the contracts you're using actually protect your company. Boilerplate contracts printed off of the Internet simply cannot do that for you. You Probably Need a Business Lawyer When You Hire Your First Employee Hiring an employee comes with a host of legal obligations, especially here on Long Island. A business attorney can advise you of your obligations. Your attorney can also help you put together policies and procedures that can reduce your chances of facing an employment lawsuit. If you intend to use employment contracts or non-compete agreements your attorney can help you put these together and can ensure that they'll hold up in court. You Definitely Need a Business Lawyer When You're Facing a Lawsuit It's sad but true: for many businesses the question isn't whether they'll get sued. The question is when. Forbes reports that up to 53% of businesses are involved in at least one litigation during any given year, and 90% of all businesses are involved in litigation at any given time. You're not lucky enough to beat those odds. Providing professional advice? You could find yourself in an errors and omissions suit. Signing contracts? Sooner or later you'll be accused of a breach, or you'll have to seek remedies because one of your business partners fails to live up to their end of the bargain. Liability suits, employment lawsuits, intellectual property lawsuits, partnership dispute lawsuits...the amount of legal trouble that a business can find itself in is vast and endless. If you've worked with an attorney from Day 1 you will usually reduce your liability for most of these suits, and will have a stronger case when you need to defend yourself. But if you've waited too long and someone's served your business, then time has run out. You need a business attorney just as soon as you find a firm you're comfortable with. Who can wait to hire a business lawyer? Sole proprietors and freelancers probably don't need a business lawyer, as long as they're not in an industry that requires a great deal of regulation. As long as these business owners don't run into any legal trouble they shouldn't need to consult with a business attorney. Get Help From Stone Student Young & Nigro Our team of Long Island business and corporate attorneys can help you with every issue that your venture might throw at you. Contact us today to set up your first appointment. See also: Corporate and Business Law Commercial Litigation Startups, Entrepreneurs, and Investors