Hi there,I am in the process of trying to sell my online web design business. I have been approached w/ many different proposals but this one has me liking it. I will be able to stay on with the business while getting help with it at the same time to grow it. - my main reason for selling is that I don t have the time anymore.How does a 50% partnership on a business work? (specifically that of an online business). Net revenue was $54,000 last year and I have heard responses from people that because I am the business, they are not sure revenue can sustain at that rate. Does the person who wants 50% buy into the business for one lump sum? How is this sum calculated? Is it paid out annually or just once?This is how it was worded to me:They would buy an agreed percentage of the business based on expected PROFITbased on past trends of monthly income. The revenue for each job would besplit 3 ways - 1. The Admin side of the job, dealing with clientcommunications etc. (15%), 2. The design/development work (60%), 3. Profit(25%).Example: If we were 50% partners and we got 3 jobs in one month totaling$4.5k. If I were busy with the family but still had a bit of time to dealwith the admin side of the 3 jobs but not do the actual jobs and they didthese. The breakdown would be...Me (CURRENT OWNER): $675 (15% of the total for admin work) + $562.50 (50% of the profit)= $1237.50Them (PROSPECTIVE BUYER): $2700 (60% for design work) + $562.50 (50% of the profit) = $3262.50The benefits of this are that there is guaranteed income from the profitbased on your percentage stake in the business as well as being rewardedfor the amount of time you can invest (Salary). All the percentages etc.can be changed to something both parties agree on.How would the total buy in be calculated? I m pretty confused as to how this whole thing works.What kind of contract would be needed? Lawyer? THANKYOU in advance!
YOU IDIOT, why are you asking kids about this. Half of everyone on here can t spell, let alone talk about business.
When they say that they want to buy in with a lump sum that means they will make one payment for 50% of the company. If i were you i would ask myself, 1. Will this new partnership increase sales revenue? You dont want to do business with a company that will only hurt you in the long run, even if the offer is very appealing. 2. Are they offering you enough money? They said it themselves they need you to keep working because they dont think the business will do as well without you. so if you grossed 54,000 and they are buying into you... i wouldnt take less than 50,000 for the company. You would definitely need to hire a lawyer to peruse through the contract and point out any loopholes because im sure there are. Best of luck to you and your business!
