Leaving barbers partnership

R

rion

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I'm looking for any advice regarding leaving a partnership. I've had to leave my partnership as myself and my partner had a few differences. I'm really confused now tho as our accountant has just told me that all I will be getting back from our business is 1300, when I invested 5000 in it. He has done the accounts and that's what he has come up with. The business is thriving and I helped to grow it. Is this the norm do I now just accept it and move on?

Thanks guys in advance Marie
 
It sounds as if he is not placing any value on goodwill.

Did you have a formal partnership agreement?

What assets and liabilities does the partnership have?

Did he show you the calculation for how the €1,300 was calculated?

Brendan
 
What was the €5,000 initial investment for? This may have been treated as a loan that has been paid back for some time.
 
Hi and thanks for the reply.

It was for getting the premises kitted out, we also didn't take any wages for the first 4 months so as we could pay all bills etc related to getting the place up and ready.

We have a partnership agreement, I'm not sure about assets but it has a great steady clientelle
 
The earnings will determine the value of the business - how long has it been in existence for?
 
It's in existence for a year, aw well the accountant must of thought that a fair amount thanks
 
How long is the business in existence and if a few years what sort of annual turnover is it doing?
 
Just a year now. I had problems with her not pulling her weight I'd to do 4 clients to her one & she spent money which didn't need spent like bringing her daughter to work when it wasn't needed so I ended up coming out with little for my hard work.

We took on 800 a week more times
 
It's in existence for a year, aw well the accountant must of thought that a fair amount thanks
 
Grizzly said:
See previous post to yours.
Click to expand...

If you're going to quote me try not being selective on what I post. I was trying to determine the turnover and see over what timescale.

Anyway Rion, you say you do 4 times the work as the other partner so why should it be you pulling out? Why not sit down and have a chat. (difficult but needs doing) I'd imagine it's the only way to settle this, otherwise you're the loser and I can't see any other way out other than the legal route and I doubt that'll be worth it as a turnover of €40'ish k would be diffiucult to sustain 2 families and keep everything ticking over IMO.
 
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