In a business where the there are 2 equal partners and one wants to pull out and, another person wants to buy his share, what exactly is the exiting p

Answer

There are two ways to terminate the partnership.

1) Take stock and assess the financial status of the business. Then pay him 50% of the value of the assets. He cannot demand all in cash if the other partner refuses or is unable to pay in cash. Either he accepts cash and some physical assets such as stock, etc. or an arrangement is paid to pay him in instalment.

OR

2) Mutually agree on a price for his 50% share of the assets without the need to take stock.

3) If another person wants to join as a partner, then a price should be agreed on to purchase a 50% share. He will then own 50% of the assets. The cash he will pay for the assets will belong solely to the one who sells him the 50%.

4) Since the stock consists mainly of cars, the process will be easier. The value of the business in R2.9 million (cars and equipment). Thus the share of each partner is R1.45 million. This amount should be paid to the outgoing partner in cash or with vehicles.