Nine areas that every partnership agreement should consider.
When was the last time you reviewed your partnership agreement? Even if you are not currently contemplating new shareholders or partners, if you haven’t looked at your agreement in the last three or more years, now may be the time.
Market forces have changed significantly over the last several years, and the partnership agreement you signed in the past may not cover issues like reduced responsibilities to accommodate work-life balance, retiring partners, or how to manage to value- or performance-based contracting in which one partner’s performance can determine if any performance payments get paid to the group at all.
From the perspective of business operations, let’s break out some of the key questions that you should consider in every partnership agreement:
Addressing your agreements from these angles will not only help you cover your bases in the event of unforeseen circumstances, it also ensures that you are providing the best ongoing governance of your practice for many years to come