Four Key Elements Of A Firm Partnership Agreement

Set up a kind of

A firm partnership

The following are the basic questions that every good partnership agreement should answer:

"What if a partner wants to leave?" the withdrawal clause is the standard in the partnership agreement.

For example, if you want to leave, your partner may be obliged to purchase your share of ownership.

This is a relatively easy part.

The most difficult part is to determine the value of an enterprise when this happens.

Enterprise assessment is a part of science, part of art, and different methods that often produce very different results.

Whether you agree to use liquidation value, book value, or income, assets or

"What if a partner dies?" if your partner dies.

Usually, her ownership shares are pferred to her spouse or child.

You will automatically get a new partner - perhaps not your new partner.

The sale and purchase agreement enables you to purchase the share of your deceased partner, but what if you have no money in your pocket or you can't get financing?

There is a simple solution: "each partner is required to use the life insurance paid by the insurance company to purchase the share of other partners.

Each partner designates another partner as the beneficiary.

Then, if your partner dies, you will always have the funds to complete the sale and purchase agreement.

Just make sure you increase the extra share as the value of your company's growth.

"What if a partner wants to change the agreement?" the vision changes with the development of the company. As long as all partners agree, the partnership agreement can be amended at any time.

Sometimes, some of you may disagree with the proposed amendments, so how to resolve the fundamental differences: mediation, arbitration, triggering the terms of sale and so on.

Knowing how the problem will eventually be solved when you fail to reach an agreement makes it easier to cooperate in different opinions.

"What if we fail to reach agreement on major issues?" no matter how well you cooperate now, misunderstanding, emotional hurting, and changes in priorities will destroy the best relationship.

When this happens, the terms of the partnership agreement can help you remain objective.

For example, your partnership agreement may stipulate that you are responsible for 60% of the work, because your partner provides a larger share of the original capital.

If he feels that you haven't done enough work, the clearer the definition of "work" in the agreement, the easier it will be to determine if you actually do your best.

Whenever possible, use hours, numbers, and amount of Funds - a measurable measure.

"What if we have already set up a company that includes partnership agreements?" if the existing agreements are not enough, it is not too late.

If you don't have the right agreement, it's not too late.

)

Simply revise your current agreement, or form a new partnership agreement.

If you think the amendment is necessary and your partner does not think so, explain to him that your only goal is to eliminate potential differences as much as possible.