Understanding, Establishing And Nurturing Business Partnerships
Succeeding in business is not only a matter of what you do but also who you know and work with. Sometimes, business owners and aspiring owners perceive the benefits of working closely with affiliated leaders who bring complementary talents, skills and resources. For example, one person may excel at manufacturing goods while another may have a strong background in marketing. Forming a partnership may bring out the best of both leadership styles and keep the profits in-house. Or, if two businesses already exist, the owners may consider merging or negotiating a joint venture.
At The R. Shawn McBride Law Firm, PLLC, entrepreneurs or owners of businesses have access to a highly knowledgeable, respected and flexible business law attorney. I am that lawyer, as well as a recognized business consultant and leadership trainer. Let me help you explore your idea of forming a partnership and then get it done if it is right for you and your business ventures.
Devising Partnership Agreements That Work
Partnership agreements may sound simple, and, in fact, you can buy online forms from which to draw up do-it-yourself partnership agreements. To protect your future, I strongly urge you to get personalized legal counsel before entering into a partnership. I work with clients who see the value in drawing up and formalizing partnership agreements that will stand the test of time.
If you and a colleague are interested in forming a partnership, a merger or a joint venture, I look forward to having a conversation with you about it. I will show you how to take into account contingencies such as “the big Ds” described below:
Death: What should happen if you or your proposed partner dies? How do you envision the business adapting if this happens? Where will ownership go and how will the business continue? You may benefit from looking into key person insurance as a possible solution. I am available to discuss the legal benefits and alternatives of such insurance and other legal forms of protection in case of the death of a partner.
Disability: What if you or your proposed co-owner becomes unable to work in the business? I can help you and your business partner plan ahead to ensure the continuity of the business as well as consideration for the partner with a disability. Provisions in a partnership agreement should ideally take into account the financial needs of the disabled person as well as the company’s survival and growth.
Disagreements: Even if you and your partner believe that you see eye to eye at the beginning of your partnership, you may ultimately disagree about:
- The future of the business
- How to conduct day-to-day operations
- When each of you will likely exit the business
I have a great deal of experience helping business partners plan for such possibilities in advance.
Divorce: If either of you gets divorced, your business assets may be subject to property division. This may result in an uncomfortable situation whereby that ex-spouse becomes a part owner of the business. People rarely want to contemplate such possibilities when forming partnerships, but I can help you and your partner build provisions for such unexpected events into your partnership agreement.
The scenarios described above are just some of the issues that may arise with your partnership agreement. Others can develop below the surface. It is my goal to make sure that regardless of what happens between you and your partner or partners, your business can continue to move forward and its value will be protected.
Let Me Lend My Knowledge And Skills To Help You Structure A Profitable Partnership
As your business law attorney, it is my goal to support your intentions for each owner to reap the benefits of their hard work and contributions throughout the life of the company. Let’s talk about how to make that a reality for your proposed partnership, merger or joint venture. I am also available to continue consulting with you about future business operations and growth aspirations.