Two of a Kind -
[Cached Version]
Published on: 3/11/2004
Last Visited: 3/11/2004
As an attorney in the Restaurant Practice Group at Fowler, White, Boggs and Banker, P.A., Alan Higbee says it is possible to take measures to find a trustworthy business partner who will make such challenges easier to overcome.
"One of the first questions I ask is why they want to be partners," says Higbee, who is based in Tampa, Florida, and whose law firm has advised restaurateurs ranging from Pizza Hut to local independents.
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Whether it is from a VC firm or another investor, Higbee says laying out what each prospective party's expectations are can prevent future complications.Sometimes, he suggests both parties write a business plan.During that process, expectations for margins, time to profitability and other objectives are outlined.
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Higbee says discussing what both parties see as an appropriate time to exit the deal -- through buyouts, sales, succession planning or foreclosure -- is crucial.
"Personality is probably the most important factor in partnerships, but that doesn't mean they have to have the same personality," he says.