The $80K Mistake That Started With a Handshake
When two friends start a business, they often rely on trust and optimism to carry them through the tough decisions.
They think, “We’ll work it out if we ever disagree.”
But I’ve seen too many businesses unravel because of this exact mindset.
Two of my former clients started a promising tech company back in 2019. College friends. No formal agreement. Just a handshake and good intentions.
Then came the turning point:
One wanted to sell to Google. The other wanted to stay independent.
The problem?
There were no buyout provisions. No defined decision-making process.
They couldn’t agree—and they couldn’t move forward. Six months of legal battles followed, along with $80,000 in legal fees and a business bleeding talent and revenue.
In this LinkedIn post, I share the one document that could have saved everything: a Partnership Buyout Agreement.
It should include:
Clear triggers for buyouts (death, disability, disagreement)
Pre-set valuation methods
Payment timelines
Defined authority for big decisions
Explore the full post here:
Don’t let a handshake cost you your business—or your friendship.
Let’s build an agreement that protects your future: www.lawpla.com
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