Help with operating agreement for a partnered search

searcher profile

November 21, 2024

by a searcher from Harvard University - Harvard Business School in Orinda, CA, USA

I would love to connect with anyone who has done a partnered search. I'm looking to understand how to craft a solid operating agreement and be able to have the right discussion for the right foundation upfront. Any advice is appreciated. Thanks!

1
6
146
Replies
6
commentor profile
Reply by a searcher
from Deakin University in Melbourne VIC, Australia
When crafting a solid operating agreement for a partnered search, focus on these key elements upfront: 1. Roles & Responsibilities: Clearly define each partner’s contributions and decision-making authority. 2. Equity Split: Agree on ownership percentages based on contributions, risk, and effort. 3. Dispute Resolution: Include a framework for resolving disagreements, such as mediation or arbitration. 4. Exit Strategies: Outline buyout options, partner withdrawal terms, and what happens in case of dissolution. 5. Profit Distribution: Detail how profits and losses will be shared. 6. Future Capital Needs: Decide how additional funding will be handled. Engage a legal professional early to ensure clarity and compliance, and have candid discussions with your partner(s) to align expectations.
commentor profile
Reply by a searcher
from Yale University in USA
Recommend the book The Partnership Charter - very tactical and useful advice. Need to have big, important, awkward conversations as early and as honestly as you can. Also build in the schedule at which you will revisit the charter and the agreement — and get a board of advisors or corporate board to
hold you accountable to it.
commentor profile
+4 more replies.
Join the discussion