Exit Strategy

A partnership such as this one needs a well defined exit strategy so the owners know exactly what is going to happen and when. It wouldn't be nice to go sailing off into the sunset without an exit plan.

Our L.L.C. will have a four year life. At the fourth anniversary the boat will be sold and the net proceeds distributed to the owners. The books will be closed and any reserve monies with be distributed also.

There are other options however. All the partners may elect to remain partners. In this case the L.L.C. will not be dissolved and the decision can be made to retain SyD as manager or to go some other way. If one or more of the partners wish to exit, the remaining partner (s) have the option of buying them out at fair market value, or they can bring in other partners to take over their position.

In any case, SyD will be ready to help if asked. We will be in a position of knowing the maintenance history of the vessel and can either sell it on the open market or we can form another L.L.C. and do it all over again. Four years hence, we should be in a wonderful position to place individual 25% owners into the L.L.C. to take over the position of exiting partners.