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Remove Smart Field into the Partnership Agreement

Remove Smart Field into the Partnership Agreement

Aug 6th, 2022

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How to Remove Smart Field into the Partnership Agreement

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39 votes

Buy-sell agreements function as a business prenup, governing decision-making processes based on ownership percentages—51% can make certain decisions, 75% may be required for others, and some issues need unanimous consent. Additionally, such agreements must consider management issues, especially if employees hold equity, which ties into employee retention strategies. The tutorial also addresses scenarios involving third-party purchasers and the implications of death, disability, bankruptcy, and divorce. In divorce cases, equitable distribution can lead to surprises, as one party's valuation may differ significantly from the other's, potentially resulting in a court ruling that divides business value regardless of expert opinions.

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