Partnership/Operating agreement clauses before signing LOI

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by a searcher from Northeastern University
in Miami, FL, USA

3yrs ago

Partnership/Operating agreement clauses before signing LOI

My equity partner wants to sign an LOI for a contractor business in Florida, and start legal and financial due diligence.

What are some must-have clauses that people should always add in partnership/operating agreements before signing an LOI?

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reply by a professional 3yrs ago
from Bentley College in Miami, FL, USA

Checkout DueDilio if you need assistance with finding a DD service provider. redacted

reply by a professional 3yrs ago
from Dartmouth College in Los Angeles, CA, USA

The quick version is, you need to work out voting thresholds for different buckets of decisions (day to day vs big ticket decisions like raising capital or selling the business or liquidating), define buyout terms and valuation mechanism, define specific roles if active in management, define transfer restrictions, define non-compete provisions if applicable, define distributions (when and in what %)