Be Careful About Bringing in Equity Partners at 20 Percent Ownership or Greater
Not everyone has the aptitude, the savvy or the deep pockets to be able to start and manage a business on their own. Most of us are dependent on bringing along a partner (or partners) of some type to help finance and run the shop. And while those associates will likely expect – and deserve – a measure of equity in the firm, just how much of that share in ownership should you allow? What are the implications when that percentage surpasses a certain threshold? Should you be con