Partnering on an acquisition and need advice!
July 21, 2023
by a searcher from Valdosta State University in Roswell, GA, USA
Hey all - I have gone through the business acquisition process with my current business, but I was a sole owner! I am currently in DD on a deal with a partner and was wondering if someone with experience partnering on a deal would mind sharing your experience. Any feedback welcome, I have a long professional relationship with this partner and want to be sure we do everything we can up front to avoid disagreements in the future that could have been avoided.
Thanks in advance!
Brett - Atlanta
from University of Georgia in Atlanta, GA, USA
1) Have a in-depth dialogue of who does/is responsible for what. That way you can easily remind your partner they've crossed into your swim lane. Neither of you can predict what the future holds, but have the hard up-front conversations now so everyone knows the rules of the road.
2) From a more technical standpoint, retain a good lawyer who is a corporate attorney through and through. They will help you draft your operating/shareholder agreement that should highlight what happens in case of a "divorce." If you have the details laid out for the worst case scenario, any break up will be smoother, and the risk of litigation lowered.
from College of William and Mary in Eau Claire, WI, USA