I'd like to know what peoples' experiences are when it comes to partner agreements for a joint search? What are the things that need to be agreed on up-front?
I have a potential partner joining me in the search and, off the top of my head, the things that need to be agreed upon are the following:
- 1. Expected time commitment from each partner (I'm full-time, partner holds a board seat in family business, is a university lecturer and has a few other part-time ventures).
- 2. Compensation for each partner during the search
- 3. Roles and responsibilities for operating the acquired company
- 4. Compensation for each partner once an acquisition has been made
- 5. Limitations of the search (geographic area, industry, size, etc.)
- 6. Early exit implications (either during the search or during operations)
- 7. Conditions that will trigger an exit from the acquired company (i.e. if buyer offers 10x EBITDA)
I would love to hear comments from the SF community regarding these points and whether I've missed anything critical. Is there a standard joint search partnership agreement that I can use? Should I involve lawyers at this stage?
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