Hi All, Been reading this forum for a while, and now after some help. Any advice would be greatly appreciated. 4 years ago, myself and a friend set up an IT consultancy company. My friend is really just useful for the office administration, while it is me that deals with clients and brings in new consultancy business. He has indicated that he now wants to exit the business (he is at retirement age). Our accountant has valued our business at £300k. This is heavily discounted based on the fact that only so much value can be attributed to rolling IT contracts. That said, I am confident of maintaining relationships and further expanding the business. Given that he wants out, it's fair to say that he doesn't really add value. But he has indicated that he reckons the business is worth closer to £500k given the size of some of the contracts that we have. Our turnover is about £700k with net profit of £90k. We take most of the annual profit via dividend (i think that's how the accountant does it anyway). Regardless of this, there is about £50k cash in the business at the moment. I want to offer my partner £150k for his 50% shareholding. My accountant has advised that it should be the company that buys back the shares, for whatever reason. Thing is, the company will need to borrow £100k+ to do the buy-back. But the net asset position of the balance sheet is only £35k. I would have thought that taking this loan would make the net asset position negative, but i'm not really that sure of how these things work. My accountant has been reasonably helpful, but i'd like to get some impartial views before proceeding. The accountant has stated that he doesn't think, given the cash inflows of the business, that borrowing the money will be a challenge. Basically, i'm wondering what people's views are on how I should proceed and whether what i have stated seems reasonable. I'd also be interested in any comments on what the accounting entries would be for the various bits of this transaction. Thanks in advance.