Buy/Sell Agreements, Potential Problem Three

What if two partners, let’s call them Joe and Steve, have irreconcilable differences? Particularly since Joe put up the money while Steve put in the sweat-equity. They have built a business that’s worth several million dollars, but Steve is hacked-off because Joe’s draining the business. Unfortunately, Steve doesn’t have the money to buy Joe out. So basically, Steve’s screwed. But if he’d used a little creative financing, this might not have been the case.

Next post, we’ll look at some solutions our hypothetical examples could have adopted.

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