50/50 Partnerships: A Case Study Part 1 | Business Partnership Mastery Series

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50/50 Partnerships: A Case Study Part 1 | Business Partnership Mastery Series

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Күн бұрын

In this video, we take a look at the real-world scenario of a two-founder team that split equity equally - a partnership setup most lawyers would almost universally advise you avoid.
If you've seen Brett's other videos, you'll know he thinks 50/50 partnerships can be fantastic, but are fundamentally based on trust and, like all business partnerships, require a rock-solid partnership agreement.
Check out this video for the real reason you want a partnership agreement:
• Partnership Agreements...
In part one of this case study, Brett discusses the issues facing my clients and how it all could have been avoided so that you can learn from their mistakes.
This is another video in Brett's Business Partnership Mastery Series, where he will be diving 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:
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Have questions? Book a call, and talk to Brett today:
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You can reach Brett through:
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www.cenkuslaw.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.
#corporatelaw #mergersandaquisitions #businesslaw #corporatelawyer

Пікірлер: 31

@JJJRRRJJJ 2 жыл бұрын

I work for my dad. So does my mom. So does my sister. So does my brother-in-law. So does my aunt. Our biggest vendor is owned by my uncle, where two of my cousins work. My grandma originally founded my dad’s business. My grandpa originally founded my uncle’s business. Obviously we’re swimming in family constantly. It has its pluses and minuses (sometimes _extremely_ so), but it’s certainly not the disaster many people claim it to be. Very important to avoid the pitfall of granting special treatment to family members (at least to the best of your ability). We’re far from perfect, but there’s no doubt that the business has grown significantly more profitable and diversified as more family has come on board.

@user-fn9os7gp4w 4 жыл бұрын

I love this guy. He's so real.

@BrettCenkus 4 жыл бұрын

Thank you

@starkbydesignmarketingandt3378 3 жыл бұрын

Fascinating case study. I think a lot of it, is because starting a business is brand new to most people. They don't have time to think about future logistics when they're just starting to go through it. There are a million things to think about; background information, resources, organization, getting clients. I'm excited to see how this turned out.

@BrettCenkus 6 жыл бұрын

What are some of your real-world stories? Whether it's partnership related or not, I'd love to hear about the experiences you've had in business!

@saadsohail2906 4 жыл бұрын

I am in business partnership with my friend worst decision ever business plan was mine, I am the one doing marketing I am the one who is talking to vendors in China he isn't doing anything at all when I said I lol go solo and he replied if u will leave me out I will import the same stuff and sell I was shock to hear that as I just started business first time in life and he already had a family business and he is rich person I am mentally so disturbed as he has taken my idea my skills my vendors I don't know what to do

@HkLY45 3 жыл бұрын

@@saadsohail2906 been a year, how did things go?

@robertklutse9586 6 жыл бұрын

Great video, Im very interested in cooperate law and have an assessment day in London for it coming up soon. The case studies are really fascinating

@BrettCenkus 6 жыл бұрын

glad you enjoyed them. Always unique and always something to learn from each one!

@williebrits6272 4 жыл бұрын

Hey! Thanks. This is good advise and insight

@BrettCenkus 4 жыл бұрын

thank you, Willie!

@gmoriano Жыл бұрын

Bang on, thank you.

@Mack.of.all.trades 4 жыл бұрын

They don’t work out, just never do. Especially with friends where there is always leeway.

@BrettCenkus 4 жыл бұрын

I understand that sentiment, for sure. It is not easy to make a 50%/50% partnership work, although I've seen more than a few work well (admittedly low percentages overall, though).

@Palaecro 4 жыл бұрын

What if your partner is not holding any accountability, blocking growth of the company through incompetence, not adding value and worst of all bullying and attacking especially if you try to talk to him about any of this. Is there legal recourse if there were no contractual obligations mapped out from the start? Perhaps legal ground for emotional abuse? We're 50/50 owners..

@BrettCenkus 4 жыл бұрын

If your partner isn't giving you access to information (e.g., locking you out of accounts), that can be a fairly quick process through the court system in the U.S.--to get a judge to force your partner to give you that information. Beyond that, if it's incompetence, not fraud or withholding information/access to which you are entitled, there isn't a lot you can do other than figuring out the procedure (in your state/other jurisdiction) for breaking up a company that is stalemated (if you aren't technically in a stalemate, I suspect that one is not far off base on what you are telling me). In most jurisdictions (e.g., states in the US), if you're 50/50 partners, there is a process to petition a judge to dissolve the company (i.e., to break up a stalemate by breaking up the company). I wouldn't expect a claim for emotional abuse to be a viable path, although I don't know much about those types of claims and have never seen one between business partners.

@hoodauthorized 3 жыл бұрын

He look like that dude off Half Baked, a litter smarter though.

@allenjohnbalangue 4 жыл бұрын

I have a question about this video. Personal message?

@HkLY45 3 жыл бұрын

My rule is if we couldn't do business together we can't be friends. I do business with everyone. I am in business. It is my life. I have nothing in common with people who aren't business people. People don't understand you should never bankrupt a relationship.

@BrettCenkus 3 жыл бұрын

Thank you for your comment. I do not have the same position on the need for my friends to do business with me, although I am not against being in business with my friends.

@HkLY45 3 жыл бұрын

@@BrettCenkus I'm not in business with all of my friends. But all of my friends are people I trust enough to do business with. Just kind of happened that way. Business is my hobby and my life.