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Comments

Leon Parker

Excellent summary of a subject often not properly handled.

My partner and I have had a number of experiences that underline the importance of your advice. Fortunately our legal adviser did a good job of setting us up when we bought the business. And we have a variety of complimentary skills, and have figured out after several years of "shake-out" how to work well together.

Too often when we visit potential clients about signing them up for a sale we find out that the reason for the sale is partnership problems, and often those problems really complicate, even sometimes preclude, making a sale.

Kirk Eklund

I believe it is even more important in a family friend partnership and everything needs to be documented from financial to who's taking out the trash. I have seen many a relationship ruined over a bad business deal.

Jackie Ossin Hirsch Crowne Atlantic Properties, FL

Richard, great article! We don't understand why buyers don't sit down and really think about moving forward with a partner and making a plan. They go about partnerships in such a casual manner. I'm lucky to have a great partnership with my dad and my brother but we planned and defined roles well in advance. The biggest issue we have seen in our transactions are: when one partner has the money and the other "earns" equity. When it comes time to sell, usually since there wasn't a plan in place, this becomes deadly for them both at times.

R. Wayne Moorhead

Someone said, "The only times you need a partner is when you are going broke and/or when you are making a baby"
From my days of teaching business I remember. There are 12 states that require Articles of Partnership. The failures of partnerships are greater than marriage.
I have a file about the terms that are needed in the articles of partnership. If you provide me an email address, I will attach them.

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