20.10 Norman and Naylor Partners is a business which runs corporate events. Sam Norman and Sally Naylor founded the business about five years ago, and it has been very successful. The partners share profits equally. It now employs five full-time staff and calls upon a pool of up to 40 additional staff who can be employed part time for specific events. Sally is several years older than Sam, and would now like to pull out of the business. She plans to take out her share of the value of the business with a view to buying and running a vineyard in Italy.

Identify the business problems and risks which Sam must deal with as a result of Sally’s decision. What are the financial implications (in broad terms) for the partners?