Rodney Ott - M&A Advisor

Beware of setting up partnerships in which two or more people have equal ownership and power in decision making. If you do, you need some kind of buy/sell agreement in which one or both partners can get out at a fair price.

Rather than a traditional shotgun clause, which could leave an undercapitalized partner with less than fair market value, consider one that relies on a third-party valuation. We recommend getting an affordable estimate of value every few years to establish a realistic benchmark.

No matter how strong your friendship is at the outset, it’s good to plan a “what if” clause if things go sour. If you can’t decide on that, don’t enter a partnership at all.

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Rod grew up in a family construction business and comes from an extended family of entrepreneurs. He understands the challenges and commitments that come with business ownership, and the importance to the client of the best possible business transaction result.