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3 partners are doing business

No.1 has 60% partnership

no2 has 23% partnership

no3 has 17% partnership

If No2 partner (23% ) want to leave partnership then how many percent partnership increase of No1 and No 2?

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What have you tried? –  lhf Jul 1 '12 at 12:10
    
i just want to know how to calculate –  Dipak Jul 1 '12 at 12:11

2 Answers 2

That's not a matter of mathematics.

Typically, unless something else has explicitly been agreed in advance between the parties, leaving a partnership requires the consent of all participating partners. So the correct answer is "whatever the two remaining partners can agree on, given the totality of the situation". All parties probably need to get lawyers involved before they can figure out what to agree on, if only to find out what the consequences of not reaching an agreement would be in their particular jurisdiction.

The leaving partner usually wants to be paid for his share of the partnership's assets, goodwill and so forth. If the partnership does not have enough operating cash available to buy him out, one or more of the remaining partners may have to put up money of their own to pay off the leaving guy; those who do so will often be rewarded with a greater share of the restructured partnership.

If the continuing partners are not willing or able to buy the leaving one out, he might effectively be stuck there. If he's really desperate, he could offer to leave for free, without getting any of his initial capital investment back -- but that still won't get him out of any liabilities he might have incurred as a partner, unless the other partners and the creditors consent on this.

Always be sure to make the rules for leaving or restructuring a business partnership explicitly clear in a formal contract, before it starts operation.

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No.1 goes from having $\dfrac{0.60}{0.60+0.23+0.17}$ of the partnership to $\dfrac{0.60}{0.60+0.17}$.

So you can work out No.1's new share and "how many percent partnership increase of No1", which can have various different interpretations. You can do the same calculation for No.3.

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