Partnership/Operating agreement clauses before signing LOI

by a searcher from Northeastern University

1 year ago

My equity partner wants to sign an LOI for a contractor business in Florida, and start legal and financial due diligence.

What are some must-have clauses that people should always add in partnership/operating agreements before signing an LOI?  

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4 comments

professional from Dartmouth College

The quick version is, you need to work out voting thresholds for different buckets of decisions (day to day vs big ticket decisions like raising capital or selling the business or liquidating), define buyout terms and valuation mechanism, define specific roles if active in management, define transfer restrictions, define non-compete provisions if applicable, define distributions (when and in what %)

1 year ago | like reply | 2 likes

professional from Bentley College

Checkout DueDilio if you need assistance with finding a DD service provider. https://www.DueDilio.com

1 year ago | like reply | 2 likes

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