Despite being entirely equal, a 50-50 equity split can leave business partners vulnerable to deadlock. The super-minority equity division (49-49-2) is a potential work around. However, many business owners aren’t comfortable giving a 2% ownership stake in the company to someone to act as a tiebreaker. Fortunately, there is another way that many partnerships decide […]
Avoiding Resentment in 51-49 Partnerships Read More »
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
The Pros and Cons of the 49-49-2 (Super-Minority) Partnership Structure Read More »
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
The Truth about 50-50 Partnership Structures Read More »