Not getting along with your business partner and don’t feel like you have any options?
Often people are company directors, shareholders, and employees in the one business and the interplay of rights and obligations associated with these roles can be quite complicated.
We have recently resolved a number of disputes and negotiated partnership agreements for clients in difficult business arrangements. This only reiterates how important it is to have clear and legally enforceable agreements in place even when dealing with family and friends.
Business partnerships Whether it’s a JV, partnership, company structure or some other equity or profit split arrangement, there are myriad considerations when looking at a business co-venture. The following list is not comprehensive nor is it in any particular order but should encourage parties to think long and hard about their interests, objectives and obligations when jumping in to bed with someone else.
Money
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Bank finance
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Capital co-contributions
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Profits split (and losses)
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Expenses
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Writing cheques
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Inventory
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Accounts
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Personal loans
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Salaries
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Periodic drawings
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Security
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Personal guarantees
Planning
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Growth
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Succession
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Retirement
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Death
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Default (bankruptcy)
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Performance issues
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Buy/sell insurance
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Valuation method
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New partner approval
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Tax
Operations
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Management portfolios
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Meetings
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Decision making
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Governance documents
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Policies
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Reporting
Separation
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Buy out
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Restrictions on sale of interest
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Notice requirements
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Restraints
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Assets
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Releases
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Indemnities
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Disputes
Big Picture
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Structure
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Premises
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Expectations and assumptions
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Abilities
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Personal priorities
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Commercial priorities
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Values/vision
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Authorities
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Disclosure
Miscellaneous
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IT infrastructure
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Employees/HR
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Marketing
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Insurance
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Intellectual property
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Systems and processes
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Contracts
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Customers
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Professional advisors
Click here to download our Business Partnerships Checklist.
