Becoming a partner..Buying out buissness

motorman

Hi All,
I am currently finishing my PhD and begining to think about what next.
I have been in research for the last 5 years to my knowledge of business and how to interact/approach buissness is new to me.
Basically I will be qualified in an extreemly small market and there is only a couple of companys that do what I do.
One of which I would be particularly keen on approaching, in run and owned by one guy who is probably close to retirement.
My question is how do I approach him about possibly becoming a partner in the business and possibly taking over the business one day (assuming he will sell it as no family will run it).
I am really out of my depth when it comes to this kind of thing and would appreciate any advice from people in the know and who may have had similar situations in the past??
Thank you in advance.

Do you know the guy well who owns the company? and have you run a company before?

motorman

I do not know him well, I have meet him a couple of times over the years in a proffessional sense and approached him when I was leaving school and making career choices.
No I have never run a buissness before, thats why I though becoming an employee/partner for some time first.

DubTony

What's your PhD in? (If you don't mind my asking - Feel free to tell me to mind my own business )

motorman

motorman wrote: »

I do not know him well, I have meet him a couple of times over the years in a proffessional sense and approached him when I was leaving school and making career choices.
No I have never run a buissness before, thats why I though becoming an employee/partner for some time first.

One other thing, what is the size of the company? how many departments? what would you estimate its turnover at?

PCPhoto

if you do consider this make sure you make a provisor for when he retires - ie an extra incentive for him to train you up and pass over the business - knowing he'll have money to survive on.

Lplated

If its such a specialised area that you can get a PhD from it, the guy might be interested in talking to you.

Why don't you write/email him and ask to meet him to get his advice (most people seem willing to give some amount of time to advise others, especially seeing as you've met him before).

Assuming he agrees, i'd talk to him about what i had to offer a business such as his in a general sense and hope that he would come up with a proposal himself.

probe

When you say "becoming a partner" - do you really mean this? If the business is conducted through a corporation (ie a "limited company" in quaint, dysfunctional, Irish law speak) this issue won't apply.

But if you enter into a partnership with another person (ie which is not an incorporated business) you become jointly and severally liable with the other guy for his debts. This includes - but is not limited to, bank loans, trade debts, mortgage obligations, litigation settlement obligations etc etc. In the current economic climate particularly, I would think long and hard before entering into a partnership with someone. You don't even have to sign a partnership agreement to get stuck in this situation.

Just make sure you are getting a shareholding + directorship in a corporation rather than a share of a partnership! And perform a due diligence exercise if a significant financial commitment is involved.

motorman

probe wrote: »

When you say "becoming a partner" - do you really mean this? If the business is conducted through a corporation (ie a "limited company" in quaint, dysfunctional, Irish law speak) this issue won't apply.

But if you enter into a partnership with another person (ie which is not an incorporated business) you become jointly and severally liable with the other guy for his debts. This includes - but is not limited to, bank loans, trade debts, mortgage obligations, litigation settlement obligations etc etc. In the current economic climate particularly, I would think long and hard before entering into a partnership with someone. You don't even have to sign a partnership agreement to get stuck in this situation.

Just make sure you are getting a shareholding + directorship in a corporation rather than a share of a partnership! And perform a due diligence exercise if a significant financial commitment is involved.

Thank you probe, this is most helpful.