Many successful business owners, caught up in the immediate demands of starting up, running and building a business give a great deal of attention to growing business value and little attention to managing risk.
Partnership agreements set out the terms of engagement and formalise an agreement when all parties can agree.
You or your business partner haven’t turned up to work today and are not coming back. How would you value the business. What would you say to the bank when they call looking for confidence the business will continue and debts would be paid. Who would inherit the shares in the business. This could well mean that by default your partners family could inherit the shares. Do they have skills to assist in the running of the business.