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Splitting business with a family member?

My brother and I have a business with different sites, I don't want money but some offices

Didn't find your answer?

I would like to take half of the business (which belongs to my brother and I) in assets (different cafe sites) not in money. Is it legal for me to ask first to share what we have instead of Him offering money for it??

I know He will want to give me money for my half, but I want to keep half of the sites, do I have some legal support for that?

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RLI
By lionofludesch
29th Dec 2020 06:56

Is this a partnership or a company or more than one company ?

Or what ?

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By Karen_green
29th Dec 2020 09:14

It is a chain of coffeeshops and other shops. The business was set by my brother and myself.
They are all Ltd. Businesses, I would like to ask him for half of the business we have. He might tell me he wants to buy me out, but I want to keep some coffeeshops, am I on my right to ask that first as an option instead of the money?

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RLI
By lionofludesch
29th Dec 2020 09:42

Quote:

It is a chain of coffeeshops and other shops. The business was set by my brother and myself.
They are all Ltd. Businesses, I would like to ask him for half of the business we have. He might tell me he wants to buy me out, but I want to keep some coffeeshops, am I on my right to ask that first as an option instead of the money?

You don't have to sell. But neither does he.

You either agree a deal or you carry on as you are.

This isn't a question to be asking here. If anything, you need a solicitor rather than an accountant.

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By Tax Dragon
29th Dec 2020 08:34

Is this a legal question? A tax question? Or what? (Your use of the tag AccountancyManager is somewhat cryptic.)

And... who owns the properties at the moment?

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By Karen_green
29th Dec 2020 09:14

It is owned by me and my brother. They are all Ltd. Businesses.

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Stepurhan
By stepurhan
29th Dec 2020 10:37

So the properties are owned personally but the businesses are run through limited companies? Multiple companies?

From what you have posted already, it would appear you do not understand enough about tax/accounting matters to provide the necessary information to get a useful answer. That is even without considering, as others have pointed out, that this is really a legal question. If you are serious about this, seek paid-for professional help sooner rather than later.

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RLI
By lionofludesch
29th Dec 2020 10:49

Quote:

It is owned by me and my brother. They are all Ltd. Businesses.

You don't have one business. You have several businesses. Each one capable of being bought or sold separately. That may be important to you in your negotiations with your brother.

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JCACE
By jcace
29th Dec 2020 09:17

Is this a single business within one limited company or multiple limited companies?
I think you are going to need an accountant and a solicitor

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By bernard michael
29th Dec 2020 09:20

If you are equal shareholders the word negotiation springs to mind

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By Youareatit
29th Dec 2020 09:53

Frankly if you have to ask such a question you shouldnt be let loose on your own to negotiate any of it. Someone is going to end up crying over the over frothed spilt milk.

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By SteveHa
29th Dec 2020 10:36

Depending on the precise facts there may be ways to achieve what you want to achieve, but the question is not a simple "yes/no" type question.

You should not be DIY'ing this, there are many pitfalls.

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By Paul Crowley
29th Dec 2020 12:10

Lots of companies
Consider the CGT position, and get advice
Also get realistic company valuations. Do not try this yourself.

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By I'msorryIhaven'taclue
29th Dec 2020 12:18

Before you involve solicitors, try putting the ball in your brother's court.

He has three options:
A. Buy out your half of the shops;
B. Both carry on as you are;
C. Divide the shops between you.

Tell him you're unlikely to accept any offer under A, no matter how high a price he offers. Let him offer away, carry on turning down his offers, until eventually he reaches his bid-ceiling. At which point, he will be left to choose between B & C.

Only if and when he chooses C will you need a solicitor (and, more than likely, a valuer and a tax accountant) to help you with the deal.

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By bernard michael
29th Dec 2020 13:45

Perhaps the OP's brother doesn't want to sell

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By I'msorryIhaven'taclue
29th Dec 2020 13:48

He doesn't. Otherwise that would have been Option D.

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RLI
By lionofludesch
29th Dec 2020 13:53

Easily resolved by making his life a misery.

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By SteveHa
29th Dec 2020 15:16

I was thinking holding company followed by statutory de-merger would be less painful. Of course, gotta watch those anti-avoidance provisions, then.

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