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Tagged Posts: disagreement’

Dealing with Management Changes

February 24, 2017

R. Shawn McBride recently published an article to the McBride For Business Blog on a topic that might be of interest: Dealing with Management Changes.

He discusses management change and how companies evolve over time.

You can see the full article here.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Read the rest

Keys to Planning: The Laws of Empowerment To Strengthen Your Business

December 30, 2016

R. Shawn McBride recently published an article to the McBride For Business Blog on a topic that might be of interest: Key to Planning: The Laws of Empowerment to Strengthen your Business.

He examines how it’s important in the planning process to understand that just because you build a plan, doesn’t mean that circumstances are going to happen exactly that way.

You can see the full article here.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. Read the rest

The Pits of Partnerships: Five Critical Things to Think About When Entering Into a Partnership

November 14, 2016

We work with a lot of business owners on business partnership, getting them set up right, establishing them, and making sure they function the way they want. We are helping them by trying to align the partners, trying to make sure the economic interest work, and trying to maximize everybody’s wealth and value creation. But what are some things you need to think about in forming a partnership? What are the pitfalls? What are you on the lookout for when you’re setting up your partnership and negotiating?… Read the rest

Key Issues in Partnership Formation

November 4, 2016

Partnerships are complex. Anytime we are involved in the formation of a company with multiple owners, we typically refer to it as a “partnership.” Now, the legal term partnership is different than the concept of partnership for economic purposes. An economic partnership can take many forms. It might be a partnership agreement, it might be an LLC agreement, or it might be a corporation. The form legally is tailored to a situation, and that’s something you can work on with your legal advisor.… Read the rest

When Things Fall Apart: Business Partnership, Disagreement, and Dissolution (Part IV)

September 8, 2016

In Mizrahi v. Cohen,[1] a dentist and an optometrist formed a limited liability company for the purpose of the construction and operation of a mixed-use building in which they intended to set up their respective offices.  The two did not have an LLC agreement at the time they formed the LLC; it was executed a few months later when they purchased the land.  The lender required an LLC agreement and the attorney who represented both members at the closing drafted an LLC agreement. … Read the rest

When Things Fall Apart: Business Partnership, Disagreement, and Dissolution (Part III)

September 6, 2016

In Saunders v. Firtel, as in Cline v. Grelock, the two business partners were close friends.[1]  Firtel was the sole owner of a pharmaceutical sales corporation called Adco and Saunders was a sales representative for a medical supply company.  In 1986, the two decided to enter into a formal business relationship by allowing Saunders to obtain a 49% shareholder interest in Adco and to become an employee of the company.  Their written agreement provided that both would devote their time and efforts to the business and receive an equal combination of compensation and fringe benefits but also allowed Firtel to spend considerable time away and apart from the business. … Read the rest

When Things Fall Apart: Business Partnership, Disagreement, and Dissolution (Part I)

August 23, 2016

Here at The R. Shawn McBride Law Firm, PLLC, we write and speak frequently on business partnership, especially the 4 Ds (death, disability, divorce, and disagreement), which can have a major impact on businesses.  In our previous blog series on business divorce, for example, we talked about why business partners may disagree, describing some instances of conflict that business owners may encounter, and what they can do to protect themselves and the value of their business in the event of a business break-up and the attendant business disruption. … Read the rest

When a Business Partner Withdraws: Interpretation of Payout Provisions Under a Partnership Agreement

August 9, 2016

As you know, we write and speak frequently about various issues involving business partnership, including the four Ds (death, disability, divorce, and disagreement).  Although many business owners starting a new venture would like to think that they are somehow immune from the four Ds, the odds are that most, if not all, businesses are bound to experience at least one of them if they are around long enough (really, who can avoid death?).  Disagreement, in particular, can precipitate the withdrawal of one or more business partners at an unexpected time, and when that happens, figuring out the financial aspect of the breakup can be messier than you would want.… Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.