Partnership Dissolutions

Partnership dissolutions are commonplace in business. Eventually, every partnership comes to an end. Some partnerships’ dissolutions end amicably after decades of success, but some partnership dissolutions end acromoniously after only months in partnership. Many businesses are based on partnerships. Whether they are based on a shareholding or number of units in a unit trust or are simply a partnership between two individuals they all share one thing in common, and that is they eventually come to an end.

When your partnership is coming to an end you will need a value for the business which is owned by the partnership. Your shareholding may be a controlling share or a 50% share or a minority share. This may cause your shareholding to be valued at parity to full value, or either a premium or at a discount.

Issues such as “loss of control’ or “lack of marketability ” will be taken into account.

For all the above reasons it is critical that you and your partners seek unbiased outside advice in determining the value of a business when a partnership is being terminated.

Your partnership dissolution is possibly the most important business negotiation you will be involved in for many years to come so it is critical you find and utilise the right partnership dissolution advisor.

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The contents do not constitute legal advice, are not intended to be a substitute for legal advice, and should not be relied upon as such for any purposes. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.