Hello, I have been in business with my partner for 3.5 years and he has approached me with a buyout. I own 25%, he owns 60%, and we have some limited partners. The business is not profitable yet, but is gaining momentum and is a real player in the marketplace. We are looking at posting our first profit this year, and have become the #3 player. All that to say, business is starting to get fun.
Our partnership has been a rocky one, because of money challenges, economy, etc. His offer is basically a capital reimbursement over the next three years (120k).
I'm wondering about deal structuring with a buyout over time, and how to protect myself should he default. Any thoughts appreciated.