By Alejandra Barrera
Partnerships could be a win-win for both the buyer and seller. From the seller’s perspective, they are adding a valuable asset to their business. In some cases, the seller needed to invest more in the business in order to expand operations but did not have the available funds to do so. Through their new investor, they are able to take the business to the next level. In other situations, the owner is completely worn out and needs someone to share the responsibilities and work of the business. From the buyer’s perspective, they are investing into a business where the current owner will help them transition completely. Many of our buyers are international investors that are looking to relocate to the United States. Once the sale of the shares has been completed, the buyer might have to go back to their home country and tie up loose ends they might have pending (visa approval, financial or personal matters). It gives them peace of mind that they have a partner that will oversee the business while they are away. A partnership is also a diverse means the international investor is able to achieve their American visa.
What are some cons of Partnerships for Businesses? Some people are against the idea of partnerships for the mere fact that they like to work alone. The cons in partnerships are based more so on personal likes and opinions. In partnerships, both (or multiple) owners need to learn how to compromise and trust each other which can take some adjusting to.
In the sale of shares of a company, we at XL Business Brokers work more so as consultants. The sale of shares is very similar to the sale of assets and consists of mostly the same process (presenting the right buyer to seller, the LOI, Due Diligence, etc.). We guide both seller and buyer throughout the whole process and refer them to the correct professionals (corporate attorney, CPA) that can help them complete the negotiation.
If a partnership is something that may interest you, please contact us today at 305-469-4242 or click here and send us a request for more information.
By Alejandra Barrera
