Negotiate and Draft Partnership, Operating and Buy Sell Agreements in San Marcos
Also serving clients in Carlsbad, Escondido, Oceanside, and Vista
The first stages of any business endeavor (or organizational effort) are always the most fun and least encumbering. Perhaps you and your best friend from college hung out one afternoon at your favorite coffee shop and developed an idea for a new Southern California business. Or maybe you were playing golf with a vendor one afternoon, and the two of you brainstormed a new arrangement for synergizing your businesses to tackle a new opportunity.
Whether you’re a fledgling entrepreneur or an experienced corporate maven, you must confront the challenges of negotiating and drafting partnership, operating, and buy sell agreements.
Here are some common questions you may have to answer:
- How will the partnership work?
- Who will be in charge of what?
- How will the compensation arrangement work?
- What happens if the original team wants to add a partner or remove someone?
- How will the new business or organization operate in the marketplace?
- What will be the internal policies?
- What agreements, documents, and procedures will you need?
- What happens if you want to change the structure?
- If you are buying a business, what guarantees do you want in place?
- How will the deal be financed?
- What happens if the seller decides late in the game to change terms or back out?
- Legally speaking, how should you manage cash flow to maximize advantages (e.g. tax deductions, other benefits) and minimize risk?
- If you are a seller, how should you vet the buyer?
- How should you negotiate any contracts?
- Can you use templates from similar deals you’ve done in the past?
Even when you successfully answer these questions – and dozens of others – your plans and preparations will only take you so far. As you draft and revise agreements, new issues, concerns, and opportunities will inevitably arise. How do you seize any opportunities, deflect conflicts and manage the paperwork, finances and personal issues that might impact the deal?
Once you codify any kind of arrangement – a buy sell agreement, partnership, or any other formal business structure or document – you lose a certain degree of flexibility. On the flip side, you get to clarify your vision and mature your business thinking.
Darius Khayat and his San Marcos-based legal team can assist you not only while you negotiate and draft key agreements, but also if you ever want to revise them, resolve disputes about them, or renegotiate/alter them in light of changing relationships, market conditions, or financial realities.
The Law Office of Darius Khayat serves San Marcos as well as surrounding communities, including Carlsbad, Vista, Escondido, and Oceanside. Call us now: 760-591-0245.