New partnership

[Jet42485]

My grandpa owns a business that is very seasonal (month in the spring, 2 months near fall) he wants to do a partnership with me, he basically wants to retire, so I'd be running it, doing paper work plus in the field work. I would be using my tuck and equipment, but it's his clients. He wants to do 50/50. I'm looking for an outsiders view. What would be a fair partner ship agreement plus with a percentage after he would die and transfer to my grandma. Thanks.

[vangogh]

50/50 is probably fair to start. True you'd be doing all the work now, but he did build the business. That's the start though. If he's looking to retire why not work something out where you could buy him out. I'm thinking something where you pay him something each month or every 3 months or whatever works and each payment buys some of his share of the business. You could set it up in a way where the payments aren't too much for you and pays him something each month or quarter in his retirement. At some point in time you'd own the business. I'm not sure how long your grandfather would like to continue making money from the business, but you can probably set something up so the payments last that length of time.

[Twhansbury]

I suggest you work on two aspects
-Equity structure, What will the payout be, Will you be required to "buy in". Vesting period?
-Pay Structure, are you going to receive a salary or pay from the company? if so how much. Will he?

Make sure you and hi are upfront and discuss all possibilities ahead of time.