We dive into 49/49/2 partnerships & explore one of the most common legally technical concerns of all multi-founder organizations.
How do we split equity to avoid stalemates?
You may hear many business attorneys advise you stay away from a 50/50 (or other equitable distribution of ownership) because disagreements can have catastrophic consequences on the progress of your business and on your partnership.
Well, 49/49/2 addresses these concerns while still providing both partners with equal ownership of the business. The third party, having a small stake in the venture, acts as a deciding vote should both founders come upon a disagreement.
But, there are some considerations to watch out for in this partnership structure. Take a look and let us know what you think!
This is the ninth video in Brett's Business Partnership Mastery Series, where he dives into both the philosophy and legal nuts and bolts of mastering business partnerships. If you are a current or future business owner, you will definitely want to stay tuned for videos in this upcoming series, so make sure to subscribe!
Inspired by the content in his book, Partner-Proofing Your Partnership, Brett will touch and expand on the primary concepts he fleshed out in that short read which you can find here:
https://www.businessattorneyinaustin.com/brett-cenkus-partner-proofing-your-partnership-ebook
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Have questions? Book a call, and talk to Brett today:
https://clarity.fm/brettcenkus
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You can reach Brett through:
https://clarity.fm/brettcenkus
https://www.linkedin.com/in/brettcenkus
https://twitter.com/BCenkus
https://www.cenkuslaw.com
https://braatenwoods.com
https://merger-resources.com
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Brett A. Cenkus has 20+ years of experience in business law, finance, and entrepreneurship. Through Cenkus Law, PC, he provides advice and services for mergers & acquisitions (M&A), securities offerings, founders’ agreements, and other general business law issues.
Through Braaten Woods, LLC, Brett helps business owners in the lower middle market ($2MM - $25MM) position themselves for sale, find buyers, negotiate, and close M&A deals.
Brett also maintains merger-resources.com, a site packed with free articles, videos, checklists, deal diagrams, template contracts, and other tools to help pass M&A knowledge to others.
Brett regularly consults with entrepreneurs and invests his own capital as an angel investor.
From 2010-2013, Brett served as Chief Legal Counsel of a publicly-traded international oilfield services company. From 2001 to 2006, he and a partner founded and built Paragon Residential Mortgage. Bridge Investments acquired Paragon in 2006.
Brett holds a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania.
Brett lives in Austin with his wife, Cathryn, and two children. He enjoys reading, squash, classic movies, great food and wine, and the New England Patriots.
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