Of the various ways to divide partner equity in multi-owner businesses, the 50-50 partnership is one of the most common. In fact, many companies use the 50-50 equity division by default. And why not? It takes very little forethought and (at least on the surface) should make everyone happy. But just because it’s widely used doesn’t mean it’s always the best option for your company.
Before you decide to split your new business down the middle, let me walk you through some of the nuances of the 50-50 equity structure: Who should and shouldn’t opt for a 50-50 setup, the pros and cons of this partnership structure, and some commonly held (and often misunderstood) beliefs about the 50-50 equity split.
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.
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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.
