Finally buying out partner- NEED Contract sample

Discussion in 'Lawn Mowing' started by wrestlingcoach, Aug 21, 2005.

  1. wrestlingcoach

    wrestlingcoach LawnSite Senior Member
    Posts: 251

    At the end of the month I am finally get to buy my partner out.

    BUT I need a sample buyout agreement to fit us.

    AS of August 21st
    Cost of accounts ( 10% of gross sales) $5,619.70
    Equipment $27,000.00
    Parts $813.00
    amount owed to us $3,939.74
    prepaid Money ($530.00)
    worker comp ( months left) $580.00
    liab ins $954.00
    truck ins $814.00
    checking acct Balance $929.24
    cash $20.00
    checks $322.00
    employee tax stuff ($123.41) owe federal their fica, fed tax
    shea &chris $0.00
    ACCOUTANT ($35.00) need to pay

    Business is Worth $40,303.27


    So I will end up paying him $20,000 and some change

    ANY THOUGHTS OR IDEAS????
     
  2. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    or are you paying cash? $27,000.00 seems like a lot of used equipment (just an observation). If he doesn't finance it make him an offer on the low side. Either way make sure you get a non-compete. Remember if your non-compete is too restrictive it will likely not be enforcable. Last but not least, remember, YOU ARE THE ONLY BUYER. No one else can buy this. Keep this in mind and do not overpay.

    I have owned several businesses and wasted lots of $ over the years, but the money I have given my lawyers has never been wasted. You don't need a sample contract you need an attorney, pay $500 less to your partner and give it to a lawyer.
     
  3. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    to add that an accountant can help structure this deal too more than save his cost in taxes. Things like paying more for the depreciating assets...whatever...I don't know this stuff but the accountants do.
     
  4. wrestlingcoach

    wrestlingcoach LawnSite Senior Member
    Posts: 251

    $ 27,000 in equipment is for what I think I can sell the equipment/ trucks today out of the paper if we had to liquidate.
     

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