Fifty/Fifty partnerships are common in the propane, oil, and gas business, and they work until they don’t. One wants to cash out via exit or sale, but the other wants to keep working, and a variety of other differences of opinion on critical business issues. As a result, Fifty/Fifty partnerships are fertile ground for conflict without explicit and specific agreements.
In this episode, Marty Kirshner, Partner with Gray, Gray & Gray, Champ Rawls, a succession planner with The Rawls Group, Doug Woosnam, a Consultant with Cetane Associates, and The Rawls Group’s succession planner, Clayton Latiolais, discuss essential strategies for 50/50 partnerships to implement to avoid catastrophic conflict.
Specifically, Marty Kirshner shares business agreements critical to keeping the peace and maximizing the value of each partner’s investment in the business. Champ Rawls adds, “Do not go to legalzoom.com,” partner with a professional who knows what they are doing. You don’t want a document that doesn’t have what you want. If you are going to get it, do it the right way; otherwise, when issues arise, the only people who win are the attorneys litigating the poorly written agreement.
And finally, Doug Woosnam shares the importance of having mechanisms in place to provide liquidity so that if there is an unexpected death or disability of one or both of the owners, the partner can cover the buy-sell needs.
Many owners risk their and their family’s financial health with no planning. As advisors, we see it more often than not. It is worth the time and investment to lean on experts who know how to navigate around business landmines that impact performance and the value of the business.
Growth Strategies for the Family-Owned Business
If you’re ready to get serious about succession and planning to ensure your business’s future success, then we can’t wait to see you at the 2023 Southeastern Convention & International Propane Expo™ in Nashville
For more insight:
Visit the “Create Control Over Your Future” discussion page or select one of the additional episodes of the series below:
- Balancing Seasonal and Political Uncertainties in the Energy Business
- Generate What You Want and Need from the Business
- How Successful Propane Marketers Protect and Build Business Value
- Strategies to Attract, Retain and Motivate Employees in the Fuel, Oil, Propane, and Energy Business
- How Fuel, Oil, Energy, and Propane Marketers Can Protect Their Business
- Return on Investment: Why Expert Guidance Matters
- Cetane Associates: a unique group of fuel industry specialists armed with assets and proprietary processes that help them perform wonders for their clients
- Gray, Gray, and Gray: With 77 years of experience working with fuel oil and propane marketers and convenience store owners, Gray, Gray & Gray has established a reputation as the energy industry’s leading accounting, consulting, and business advisory firm.
- Succession Readiness Survey: A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook, impacting business value, growth, and lifestyle, and ultimately achieving your vision.
- Contact a Succession Planner: The Rawls Group can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business immediately.
The Succession Planning Matrix
The Succession Planning Matrix
Many people put off succession planning because they think it means retirement, exit, and the end. However; succession planning is just the beginning. It gives the owner options in terms of what “their next” looks like, whether that be growth, philanthropy, or a new business venture. Our process focuses are addressing 10 key areas of what we call the Succession Matrix.
Click the following link for more drill-down resources on The Succession Matrix, or check out our Facebook post.
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We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.