Can I buy out my partner gradually instead of paying them all at once?

Yes, a gradual buyout is a common way to structure a partner exit, most often using a vendor take-back arrangement where the departing partner accepts payments over time rather than the full amount at closing, secured against the business's assets in the meantime. Some buyouts are also structured as a staged transfer of shares — for example, transferring and paying for a portion of the departing partner's shares now, with further tranches at agreed future dates — rather than a single lump-sum transfer with deferred payment.

Either approach needs a clear written agreement covering the payment schedule, the security the departing partner holds until fully paid, what governance or voting rights, if any, the departing partner retains during the gradual buyout, and what happens if a payment is missed or circumstances change significantly partway through. Because a gradual buyout extends the financial relationship between the partners well past the exit, the terms deserve as much care as the buyout price itself.