Transworld Blog

From business brokerage to mergers and acquisitions; we are the business sale specialists.

All Posts

4 Tips for Buying an Existing Business with a Partner

Buying a business with a partner can be a great tactic to cultivate and develop a profitable business. Although in theory buying an existing business with a partner sounds like an easy decision, there are some factors to consider before diving into a business partnership.

Partners in a business must work hard to make these professional relationships work. Each individual must strive to see things through, and nurture the partnership over the years. When you and a professional cohort decide to purchase the perfect business together, follow these 4 tips to ensure you’re creating a meaningful and long-lasting relationship:4 Tips for Buying an Existing Business with a Partner

1. Establish Clear Expectations

Head out of the gate together by defining exactly what responsibilities each partner will carry once the purchase of a business is final. Decide if each partner will have specific responsibilities and areas to oversee, or if the entire running of the business will be a team endeavor. By defining roles ahead of time, you both will enter the partnership feeling heard, appreciated, and necessary.


2. Ensure Financial Details are Organized

Although no one wants to have the difficult money conversation, they are necessary for a fair and well-developed partnership. Financial details such as employee pay, salaries, bills, and overall business purchases must be discussed before the purchase is completed so both partners have a clear understanding of what exact financial responsibilities they carry.


3. Develop a Shared Vision

Entrepreneurs are known for their compelling passion and drive towards growth. But in a business partnership, both parties must have a shared vision, along with shared goals. Before you buy an existing business, sit down and discuss the possibilities that the business contains, and if you both are willing to work towards expansion and growth within the business using the same means. Review the branding, target market, marketing, and mission statement for the business together and revise where necessary.


4. Review Your “What-Ifs?”

It is common practice for two business partners to sit down and develop a “what-ifs” list, outlining what measures would be taken if unexpected events occur. Some examples of “what-if’s” include:

  • If one business partner wants to sell their share.
  • An event resulting in one partner being unable to work.
  • What happens if a key employee quits?
  • Who will travel for business if need be?
  • What happens financially if the business is not successful?


Once you’ve developed a list of possible occurrences, both partners should discuss the exact plan of action for each possibility and have it officially recorded. Doing so creates a bond of trust between partners, and allows you to enter a solid business relationship for the duration that you’re in business together.

Related Posts

PPP Loan Hurting Your Business Sale?

I Want To Sell But Have A PPP Loan  If your business has a PPP loan and you are selling all or part of the business, you may need approval from the SBA or the bank that handled your loan. You may also need to put the amount of any unforgiven portion into escrow at close. 

Is Buying A Business A Good Idea?

Yes!  Buying a business is a good idea.  Why?

Ten Steps To Selling Your Business

Our Sellers except us to achieve the highest and best offer for their business while taking the least amount of their time away from it as possible. That is because the absolute best use of their time is to continue to run and grow the company.  If revenue or profits begin to decline, buyers will walk away or decrease their offer. Transworld's philosophy can be summed up in a ten step, how-to strategy that culminates with the sale of a company. This proven method has been used to sell hundreds of businesses.  Here are the steps. Step1 Comprehensive Business Analysis and Feedback As your business broker, the first thing in our how-to strategy is to analyze your operation, finances, market potential and industry trends. We take that information and advise you on steps to prepare your business for sale, and  generate a business profile that represents your company in the most attractive way possible. Step2 Sale Structure We identify the best possible price range to sell your company. This is based on solid facts, the condition of the market, projected growth, sales potential and the sale of similar businesses within your industry. Transworld’s experts apply sophisticated, time-proven valuation techniques to ensure that your price is appropriate for the current market condition. The price must not be too high or too low. Yet, it must represent an attractive investment potential for the buyer. Step3 Confidentially Network The Business For Sale During the selling process, we utilize the latest technology to present your company to other business brokers and strategic buyers all over the world. This greatly multiplies the effort in your favor. With Transworld Business Advisors, you have literally thousands of industry professionals confidentially representing your company to buyers.   Step4 Confidentially Advertise To Buyers Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your company. Your listing is placed in various industry databases, Internet sites, and publications which are constantly updated. We spend more money in advertising and marketing for buyers than anyone else in our industry. Step5 Control The Information Flow We organize all necessary documentation and release information only as needed. We use limited information when advertising to maintain confidentiality. Buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive business information. Step6 Create Competition For Your Company We attract thousands of buyers, creating competition for your business. Buyers are qualified for financial ability to meet the offer, and we engage you with only the most qualified buyers. Once you meet the best of the buyers, we urge them to prepare and present all offers. We can continue to engage potential buyers on your behalf as negotiation on an offer is in process and have another interested party ready to go should a buyer change their mind. Step7 We Negotiate For You To Achieve The Best Price Appropriate negotiation is crucial to achieving your best price and terms. We have the expertise to establish sound and resourceful negotiating techniques on your behalf. Transworld has trained all of its agents in the art of negotiating through curriculum that we have created specifically for our industry. Never negotiate without planning, expertise, or from a position of weakness. Step8 We Provide Exceptional Support To You Through The Due Diligence Process We take pride in our exceptional service. Only half of the job is finding the right buyer who will pay your price and meet your terms. The other half is getting that buyer to the closing table. We quarterback the deal, work with the accountants, lawyers, banks, landlords, and other third parties that could jeopardize the success of the transaction. We realize that you depend on us to guide you through the sale of your business. We make the transition simple and easy for you. We know when an opportunity for you may arise and are always there to take advantage of it. We also know when someone is trying to kill your deal or is being unreasonable and how to handle those situations. Step9 We Are There From Beginning To The Closing We help manage all administrative procedures, licenses, inventory counts and lease assignments that may be required. Transworld works closely with your advisors to ensure a smooth transition. Using the latest technology, we strive to be ready to work on your behalf to get the deal done! Step10 We Are There For The Transitional Phase And Beyond! Because we are in the business community, you may want to consult us from time to time after the sale. We will provide you with the assistance after closing. Transworld will always remain in your corner! Schedule Consultation Now

Your Goals Are Just the Beginning

Talk to one of our Advisors today about next steps.

Free Consultation

E-mail address

Contact us

+(888) 290-5232

Confidential Consultation

Talk to an Advisor