Partnership agreement??

scqhgal · Postby **scqhgal** » Thu Jan 27, 2005 7:23 am

Hi! I just found this board last week and I must say, its a wealth of information. I am partnering with someone on one, possibly two nice TB broodmares and was wondering if anyone might have a partnership contract they would be willing to send me. My biggest concern is outlining alternatives if one partners wants to get out down the road. Thanks in advance for your help and I look forward to learning a lot here!

Susan

Postby **Roguelet** » Thu Jan 27, 2005 7:49 am

We just had a thread on this very thing. Here's the link to the thread:

http://www.pedigreequery.com/forum/viewtopic.php?t=2247&highlight=partnership

If you still have questions that the thread doesn't answer, ask away!

scqhgal · Postby **scqhgal** » Thu Jan 27, 2005 11:36 am

Thanks for the link. However, I was looking more for input on what conditions folks put in when one partner wants 'out'. For example...if the other partner can't come up with the money to buy them out, what do you do? How much notice do you give? Do you set a buyout amout at the beginning? Stuff like that.

Thanks for your help!

madelyn · Postby **madelyn** » Thu Jan 27, 2005 11:40 am

For this you will probably need a lawyer. However, I have owned several business and found the best way is to sit down with the prospective partner(s), maybe over beers, and do a Whole Bunch of Whattiffing. What if this happens.. that happens.. write down what everyone wants. If you have several partners, at this stage you might have to see if you can move this to a private room because this can get pretty loud. Things will come out that you would have never dreamed about. You may have to tape record the meeting because they may talk to fast even for shorthand. At the end you have a rough framework for your partnership agreement. Run that by the lawyer in case you have something in there that has a statutory conflict. Good luck.

scqhgal · Postby **scqhgal** » Thu Jan 27, 2005 1:03 pm

Thanks, its just me and a friend of mine. No big high dollars involved. We're basically splitting everything 50/50 so its pretty simple, but just looking for scenarios if one wants out down the road. Thanks for your advice, its very much appreciated.

madelyn · Postby **madelyn** » Thu Jan 27, 2005 1:29 pm

okay, so just what is split 50/50? Spell it out. Vet, farrier, board, enumerate the costs. Then you have to come up with possible out scenarios and timeframes... if it is a mare in foal at two weeks before the due date how do you figure what to do? You should have a buy/sell agreement, maybe with a sliding scale, but by figuring out all of this up Front, you will have a budget as to the possibility of the partnership making money, and may end up walking on the whole thing :lol:

sometimes good things come out, even if they seem bad at the time.

LSB · Postby **LSB** » Thu Jan 27, 2005 4:28 pm

I am currently in a partnership in a broodmare that needs to be dissolved. We made an offer to the other party which they refused. They made a (somewhat laughable) offer to us, which we refused.

At this point as we all understand it, there are two options. Either hire several independent appraisers to price the mare, average out their appraisals, and then split her according to that figure. Or put the mare through a sale and let the market put a value on her. We've decided to take the latter route and will be selling her in November. Of course, at the time, either party will have the option to purchase her at the sale if they choose.

DLC · Postby **DLC** » Thu Jan 27, 2005 9:47 pm

Possibly discuss your concerns with the partner? Also, maybe it would be best to partner on just one mare and see how that works out?

timex · Postby **timex** » Tue Feb 01, 2005 8:52 am

Also, make sure you have every possibility worked out. go through every possible scenario you can think of, and work out solutions.

roxie901 · Postby **roxie901** » Tue Feb 01, 2005 9:34 am

My partner and I have a "buy sell agreement" set up by the attorney which states if one partner makes an offer to buy out the other partner- that the second partner can refuse the offer and then place a sell demand on the first partner at the same terms originally offered. This is designed to keep one partner from trying to buy out the other partner with an unfair offer.
And alternatively there is a clause for mediation to "dissolve the assets" and then divide up the proceeds which would essentially mean selling the horses.
I think the "buy sell" is a good way to keep partners honest with each other.
Attorneys do this part of it best- I could not find these clauses in the standard forms on the internet.