We have extensive experience and a proven track record in assisting businesses which consist of two or more owners (or equity holders). Our brief often involves the following:
Documenting the business relationship.
As regards which structure to use, go to this page.
If there is more than one owner / business partner, they should have an agreement.
The types of agreements involved are usually:
Shareholders and Unitholders Agreements
Joint Venture Agreements
Generally, a business plan should be attached to the agreement.
This type of agreement is important because:
it helps the parties to form a clear understanding between themselves about the arrangement [note 1]
reduces misunderstandings and disputes (which can severely damage if not destroy a business, along with the investments made into it).
Business Succession Planning
Smart business partners work out in advance what will happen in the following scenarios:
Voluntary exit - where one or more of them wants to leave the business (or sell the business)
Involuntary exit - where one or more of the business partners is unable to continue to participate in the business, whether throug death or incapacity.
It is best to deal with these matters at the beginning of the relationship if possible, or at least any of the partners decides to, or has to, leave the business. At this time it is easier for the partners to work out a fair arrangement dispassionately.