Family Business Partnership Agreements
There are several ways to prepare partnerships that are equal to the possibility of conflict. Most of the time, they define a process that allows you to decide fairly how a partner can leave and be redeemed. This would involve an agreed process of evaluation and decision as to which partner will buy the other. Nevertheless, if the conflict and mistrust are deep, the offended partner could continue to question the process or metrics that determine the value of the business. And this process deals only with the business problems of the conflict and ignores the family problems that lie beneath. There are several commercial structures as well as commercial partnerships. The most appropriate for your business depends on your circumstances. The three most common business structures are: and don`t reject the need for a partnership agreement, because your proposed partner is your good friend; Some of the uoldest breakups in partnerships I`ve heard or seen have happened between friends who thought they knew what their boyfriend was thinking or was going to do. Remember that in general commercial companies, each partner is co-responsible for all debts/liabilities of the company. Consult with other partners in the company on how to handle the situation.
Determine who will buy the partner`s share when they sell it. To maintain the fair distribution of shares, plan to divide the share among you or attract a new partner. Then, consult with family members outside the company to keep everyone informed. This will prevent the escalation of hostilities between family members outside and inside the company. What can help resolve these disputes must be done before they arise. Any 50-50 partnership should include from the outset a process that begins if the couple can`t agree on a topic. There should also be a process of dissolution of the partnership when the conflict is so deep that it is impossible to find a solution. And both processes should involve not only both partners, but also people. Evaluating a stake in a family business is very difficult, because what matters is what the “senior” partner wants to pay. He may choose to help by paying too much for what is worth an action, or he may choose not to pay anything because he has not “granted” the bet at all. In other words, the assessment depends on what the senior (high-ranking family member) decides they want to use….