Partners in new multi-owner businesses have the option to choose between numerous ownership structures. The most common equity division is the 50-50 partnership. However, this “even split” is not without its pros and cons.
Another common structure is the 49-49-2 partnership where a third partner is given a super-minority stake in the business. The 49-49-2 equity division is meant to avoid any deadlock concerns that might arise with two equal partners. The super-minority partner is meant to act as a neutral tiebreaker, but the situation on the ground can devolve into one where the 2% owner actually makes all the decisions!
Your Path to a Successful Business Partnership
Learn the insider secrets to building strong business partnerships and the fundamental role a comprehensive agreement plays in the success of a multi-owner business.
Download a free copy of our new book!
Building Better Business Partnerships
Here at Alexander Abramson, we focus exclusively on business-related legal matters. We have advised business owners and entrepreneurs for over 25 years on partnerships and partnership agreements, and we have distilled that knowledge into our Partnership Design System.
Our unique 4-step system will:
- Guide a discussion of the 21 key partnership parameters,
- Build a strong foundation for your new business partnership,
- Create a comprehensive written agreement understood by all the partners,
- Increase the chance of success for your business partnership!
Help ensure you can start and grow your business successfully now and protect the business and your investment in the future. Call us at 407-649-7777 or email a team member to schedule a Partnership Design Session now.
