An asset that is not performing well in the markets may also be partially or fully liquidated to minimize or avoid losses.An investor who needs cash to fulfill other non-investment obligations, such as bill payments, vacation expenses, car purchase, tuition fees, etc. Financial advisors tasked with allocating assets to a portfolio usually consider, among other factors, why the investor wants to invest a certain amount of money and for how long s/he would like to invest for.
The shareholders appoint a liquidator who dissolves the company by collecting the assets of the solvent company, liquidating the assets, and distributing the proceeds to employees who are owed wages and to creditors in order of priority.
It may also be possible for the partnership to make payments to the departing partner for certain assets that can be deductible as guaranteed payments for the partnership but are considered ordinary income to the departing partner.
It must be determined what types of assets the departing partner is giving up to make this determination.
Thus, there are many aspects to consider when making a decision to sell your partnership interest.
We suggest that you contact your business advisor prior to any entering into any sale agreement.