My Business Partner Wants To Sell - What Now?

Welcome back to another edition of The Wise Exit!

What’s Your Business REALLY Worth?

Most founders undervalue their business and leave millions on the table when it’s time to sell.

But with a Certified Pro Valuation from Exitwise, you’ll know:

• Your true market value: Based on real-time industry data, private sales, and proven valuation methods

• How to increase your business’ worth: With expert recommendations to maximize your exit

• Who’s buying: We’ll curate a list of top buyers in your sector

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In today's issue, we're covering:

1. My Business Partner Wants To Sell - What Now?

2. Attorney Fees for Selling a Business: What You Need to Know

3. The Perfect Time to Sell Might Surprise You

Let's dive in!

My Business Partner Wants To Sell - What Now?

Few situations cause more stress than when your business partner unexpectedly announces they want out.

Because whether you've been in business together for 2 years or 20, this moment forces critical decisions about your company's future (and your own).

First, take a breath. This conversation doesn't have to turn adversarial.

In fact, partner exits happen every day, and with proper planning, can lead to positive outcomes for everyone involved.

Your options typically fall into three categories:

1. Buy your partner out: Take full ownership and continue the business independently

2. Sell your stake: Agree to a complete business sale to a third party

3. Find a replacement partner: Bring in someone new to take over your partner's equity and role

Each path has significant implications for the business, your finances, and your daily life.

The right choice depends on your personal goals, financial situation, and partnership dynamics.

Here are 4 critical first steps:

1. Review your partnership agreement: What does it say about buyouts, valuation methods, and exit procedures?

2. Get an objective business valuation: Know what the business is actually worth before discussing numbers.

3. Understand your partner's timeline: Is this urgent, or are they flexible about transition timing?

4. Assess your own goals honestly: Do you actually want to continue without them?

A forced decision is rarely the best decision.

So evaluate all options before committing to a path forward. And if you need help, drop me a message on LinkedIn, and let's talk.

Featured Blog 📰

Legal fees can take a significant bite out of your exit proceeds if you're not careful.

Our latest blog explores what you need to know about attorney costs when selling your business.

We cover:

• How attorney fees are typically structured

• Factors that influence legal costs in M&A deals

• Ways to maximize value while minimizing expenses

• How to choose the right M&A attorney for your situation

Check out "Attorney Fees for Selling a Business: Costs & Considerations" on our blog.

M&A Tips from Brian Dukes 💡

"When's the perfect time to sell?"

It's a question I hear all the time. My answer?

If you're waiting for perfect market conditions, you'll be waiting forever.

Yes, market conditions matter. But they shouldn't control your decision.

Here's what buyers are really thinking about in today's market:

Read the full post on LinkedIn.

In The News 📱

The $8.5B Sundown: Microsoft Finally Pulls the Plug on Skype

Remember Skype?

Well, Microsoft is finally shutting it down after 20+ years.

Pretty remarkable when you think about it.

Skype was Microsoft's biggest acquisition back in 2011, at a whopping $8.5B deal (still their fourth-largest ever).

We all used to "Skype" people, right? The Estonian startup, founded in 2003, completely changed how we thought about long-distance communication.

Free international calls? It was revolutionary at the time.

So what went wrong?

Despite Microsoft integrating Skype everywhere – Windows, Xbox, Office – they never solved their internal platform conflict.

They already had Microsoft Lync competing for the same users.

And by 2017, they'd launched Teams as a "Skype for Business" replacement, and the writing was on the wall.

Then came the pandemic (Skype's big moment). Except... it wasn't.

While Zoom, Teams, and others thrived, Skype kept losing ground.

The lesson?

Even an $8.5B market leader can fail without clear positioning and continued innovation. Users have until May 5th, 2024 to export their data or move to Teams.

A sobering reminder for founders that no business position is permanent.

That's all for this week!

Remember, partner exits don't have to be contentious.

With the right approach, they can open doors to new opportunities.

Best,

Brian Dukes