Define equality carefully
Equal treatment can refer to voting, economics, board representation, liquidity rights, or operating authority. Those concepts should not be assumed to mean the same thing.
Plan for future decisions
Acquisitions, financing, compensation, budgets, leadership changes, and eventual liquidity can place stress on arrangements that worked at formation.
Document the operating model
Clear decision rights, reserved matters, dispute mechanisms, and performance expectations help founders move from two independent businesses to one enterprise.
Questions for Owners
Questions worth considering
- Which decisions require joint approval?
- How will future capital and acquisitions affect ownership?
- What happens when founders disagree?