Taking on a business partner

I have that number in mind/calculated. It's the "what percentage of that" part that Im trying to guesstimate.

If I were in that situation, I would say I'm willing to give you x % of the company, but in equal installments over an x year vesting schedule.


That way you don't give 50% or whatever to someone who then shags arse and leaves you to run the business




ETA: unless they are actually buying in. if that's the case, pay a valuation accountant to put a $$$ value on the company, then decide what % you are willing to sell

That's a tough thing. When I bought in, I bought in as a minority owner. But I had worked with, and for my senior partner for a long, long time. Also, he was fair, and is honest.

You have a different situation. It would be difficult for me to give up more than 49.9%. I would keep control.

At that point, just specify in writing what salaries, dividends, distributions etc would be. Because for all practical purposes, minority ownership in a tightly held company usually renders the minority owner powerless. Realistically you could declare salaries and distributions, predicated on entity, and you new partner would have to eat whatever you dished out.

So if she knows this, she should want fair salaries agreed upon in writing, and at what point profits are distributed and in what percentage. Having said that, if you maintain controlling interest, that agreement is worth the paper it's written on because you control the vote(s) to change this.

A wealthy old banker one time told me, don't ever have partners, and don't ever own real estate. He's over 90, and this is an extreme view, but I get what he was saying.

For starters, we need pics of the potential partner. Preferably full body shots. But from the waist up is acceptable if you give a detailed breakdown of what the badonkadonk looks like.

There's absolutely not way we can give accurate advice without it.

Don't give away control.

Is she actually buying in, or is this a sweat equity kind of thing?

If she's not bringing in cash, consider making her a profit and loss only partner at first.