Let's talk about the nuances of deadlock in equal partnerships.
Recently, I worked with two veterinarians keen on a 50/50 partnership for their practice. Despite understanding the inherent risks, they felt confident that their 12-year friendship would prevent any deadlock situations.
I cheered their optimism, but still insisted on including a deadlock resolution process in their agreement. No matter how well they’re getting along now, it’s important to plan for the unexpected.
Here’s the process we established:
1️⃣ Negotiation: Partners set aside dedicated time to present their viewpoints and work through the deadlock.
2️⃣ Mediation: If negotiation fails, a trusted mutual veterinarian friend, chosen as stipulated in the agreement, mediates the dispute.
3️⃣ Buy-Sell: As a last resort, if they still can’t break the deadlock, a mutual buy-sell arrangement allows one partner to buy out the other based on a pre-determined process.
I believe in preparing for potential conflicts while the skies are clear, ensuring the agreement guides the business without emotional interference.
Considering a partnership or navigating challenges in an existing one? Let's discuss how to structure your venture for long-term success.
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