Partners in new multi-owner businesses all have to tackle the question of equity division. The “established wisdom” about how to divide partner equity is varied and much of it is short sighted. The last thing you want is to do is create long-term resentment because of how this process was done.
We’ll dive into the actual equity divisions in future posts, but today I want to take a 30,000-foot view and discuss the motivations, incentives, and reasoning behind the methods partners use to divide equity.
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