There are times when business growth is linked to incorporating a new partner into the company. It may be, in fact, a solution to the crisis that is being experienced.
Incorporating a new partner to the company brings great advantages to the company, as detailed by Asesoría PYB. Among them, the possibility of expanding the business stands out, since it is possible to invest more in the company and obtain greater profitability.
On the other hand, by incorporating a new partner to the company, you can access new resources. There are partners that not only offer capital, but can also provide valuable information to the company.
Also, if the company goes through a bad time, having a new partner would allow it to reduce the risks of bankruptcy or errors. This will also save the company from having to close down.
When incorporating a partner, it is important to be clear about what type of partner it will be. It can be a capitalist partner, which is the one that provides financing and in exchange gets a part of the company. It can also be a technological partner, which allows you to obtain more knowledge in exchange for a percentage of the profits. Or an industrial partner, one who does not contribute capital, but does offer his knowledge, or an executive, when he is involved in the day-to-day running of the company and adds value.
Entry and exit clauses
When incorporating a new partner in the company, an agreement must be sealed between the partners. This pact is called the Investment Agreement and regulates, as explained by Sirera+Saval Abogados, the most important aspects of the new relationship.
When new partners enter the company, the Board of Directors must be renewed and how it will function must be established, as well as the majorities necessary to make decisions.
The clauses of the agreement must include issues such as how long the permanence of the promoters of the company is ensured or aspects that prevent the partners from participating in competing companies.
Likewise, an entry and exit clause will be established. For example, in limited partnerships, if a partner wants to sell his shares, the other partners have preferential rights to acquire them based on their percentage of shares.
Nor should we forget the remuneration and dividend clauses or the one in which the investor is assured a minimum return on his investment.