Legal Question in Business Law in Massachusetts

Re: partnership dissolution

The option is to dissolve the partnership in accordance with your parntership agreement. If there is no partnership agreement then the statute and common law govern your dissolution.

It would mean in all likelihood a sale of all the assets of the partnership, including partnership equipment, client lists, advertising materials, even the telephone numbers if they have value. Then all obligations of the partnership would have to be paid and then you and he would split anything that was left over. If you still owe money to creditors you both would have to pay the creditors.

If a receiver has to be appointed, there will probably be nothing left. This is why partnership agreements are so important when you start a business.

I would suggest you have someone value your business and tell you what it is worth if sold in its entirety. Take 10%-20% less than that value and that is the value of 1/2 the business.

Unless you own control of a closely held business selling a portion of it is generally worth less than the whole with limited exceptions.

There are other ways of doing this. In the end your partner needs to realistic as do you. Otherwise, you need not buy him out.

If you have more questions, please feel free to contact me.