What’s in your owners’ agreement? I recommend creating these critical documents when the firm is first formed and updating them as needed. An effective agreement can enhance decision-making and productivity, and it’s also the foundation for a successful changeover to new internal ownership. Even in a merger or acquisition, the decisions set forth in an owners’ agreement can set the stage for a smoother and more rewarding transition. Here are some significant issues that should be addressed in any agreement.
Firm governance. When you establish policies on who will run the organization and how it will be run, it can enhance efficiency and profitability. No matter how independently each partner may handle his or her work, there are many advantages to having common agreement on some key issues, such as: