Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 9 of 9 Posts

·
Registered
Joined
·
69 Posts
Discussion Starter · #1 ·
Well I'm in the process of buying into an existing business. A tree farm to be precise. Probably working my way into over the coarse of three or four years. labor in exchange for partnership. Does anyone here have any experience with partnerships and the legal/financial end of it?
 

·
Registered
Joined
·
2,380 Posts
In my observation of patnerships, they don't work out. I'm not saying it is impossible. I would guess it will last for a few years and then someone will get mad and quit. I think I just descirbed marriages also.
 

·
Registered
Joined
·
69 Posts
Discussion Starter · #5 ·
analyzed and considered the relationship end of it. We're good there. Just trying to get my mind wrapped around the logistics of it.
 

·
Vendor
Joined
·
24 Posts
Your best bet is to get a good lawyer to write it up for you. Make sure you both go into it knowing what you want as far as terms and conditions, including voting rights, ownership percentage, terms upon one party leaving, etc...A good lawyer should be able to provide advice as to the necessary things you'll need to address, so you just need to fill in specifics. (Based upon my recent experience forming a partnership)
 

·
GC/carpenter
Joined
·
43,923 Posts
My father had a partner for many years, it went very well. One was office manager the other was field supervisor. They even switched rolls on occasion. Both guys new each other and worked side by side for years before they jumped in and put everything they owned into it. Fortunately it was very successful. They had a large yard several trucks and a full office staff. What I will say is, this situation was considered rare. It usually doesn't work out like that. My father and his partner knew each other's positions and just got out of each other's way and didn't micromanage one another.
 

·
Registered
Joined
·
333 Posts
there's only a few reasons why an owner would give up part of their business via "sweat equity"..

one, the person can bring in a good following of clientele that will grow the business, another, the business is broke and can only survive with a good worker for cheap.

no sane business owner brings a partner into a thriving business.
 

·
Registered
Joined
·
7,076 Posts
Your best bet is to get a good lawyer to write it up for you. Make sure you both go into it knowing what you want as far as terms and conditions, including voting rights, ownership percentage, terms upon one party leaving, etc...A good lawyer should be able to provide advice as to the necessary things you'll need to address, so you just need to fill in specifics. (Based upon my recent experience forming a partnership)
Agreed.
 
1 - 9 of 9 Posts
Top