The death of a business partner is devastating.  After the memorials have been completed and funeral held, the time has come to think about what is left in his aftermath.  It is  pretty common, that when dealing with a partnership, one of the partners specializes in one area while you specialize in another.  How do we move on from such a difficult time?  In this segment, we are going to discuss restructuring a business, what is the business worth, going through property in probate to determine who the business will be passed on to, and continuing to make the business prosper. 

Business Must Go On!  What Do You Do Now?

As you leave the office of the lawyer, you have been informed that your partner left a will.  His son was given his share of the business.   The restaurant, Smokey’s Ribs and Burgers, is now in limbo. Fortunately, his son is willing to sell his share of the business to you.  After going through probate, you sit with the son and determine what he expects to receive from his share of the business.  How much is he asking for it?

Purchasing a business

In conversation, you both agree that you will purchase his part of the business, but what is it worth?   One of the best ways to determine the worth of a business is to investigate it.  You should find out how is business conducted and how is it reported?  First, carefully review all paperwork related to the business and its finances.  This will assist you with evaluating the value of the business.  You can also study the business in person to see how the seller runs their business.  Also, you may want to study its demographics as well.

Business Partner

Once you agree on the price, you and the decedents son must make a contract to sell the business to you.  Moving forward, the next decision is how does the business operate moving forward?  Do you find a new partner? Do you change the type of business to a S- Corp?   Each situation is different, but it may be wise to go see an attorney to determine which entity is better for your situation.

Adding A Vehicle To the Business

The restaurant does well on its own, but with the rise in food trucks you decide to venture out into this uncharted territory.  At this time, you meet a young man who has agreed to cook for you on the food truck.  His past experience with your competition is a great asset to the business.  You have a few questions, Is it legal to have his past patrons follow him to this truck?  The answer is yes.  If your new employee happened to have personal contact with these clients or is able to advertise on his own social media, there is no wrong doing in this.

** Building a business is difficult, but recovering after a loss, can be devastating for a business.  It is important to remember to keep your head up and reach for the moon.  Even if you come up short, you will still be among the stars.

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