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In this episode, Alay and Tamara discuss:
- Key mistakes attorneys make in creating partnership agreements.
- Profit sharing models at law firms.
- Making sure the buy-in and buy-out both make sense.
- Partnerships will evolve over time. Make sure you create flexibility in your agreement.
- 50/50 partnerships tend to create problems.
- Lawyers are creative people – no two partnership agreements are going to be exactly the same.
- There are three hats you have to wear as a lawyer: lawyer, sales, and management. Not everyone is good at all three (or even wants to be good at each of them).
- “Because partnerships are fluid, they change over time. And if you don’t leave some flexibility in there to change in the future, you’ll end up getting a partnership agreement that’s out of date.” — Tamara Pow
- “Ride that fine balance between having an agreement that’s complex, but not overly complex. So it’s going to address most of the issues that the partners might have, yet, it’s still workable, and they can live with it.” — Alay Yajnik
- “I would caution anyone that if you are adding a second partner to your firm, you need to think about that very carefully. And you need to make sure that you have a way out if it doesn’t work. ” — Tamara Pow
- “Bringing someone in as a partner does not mean they’re being brought in as an equal partner – they may not have equity at all.” — Alay Yajnik
About Tamara Pow:
Tamara Pow is a founding partner of Strategy Law, LLP. Her practice focuses on the needs of business owners and real estate investors. She provides legal advice for various business transactions, including partnership agreements, M&A, negotiating contracts, limiting liability, company-side employment matters and tax planning. Tamara has extensive experience with the formation and representation of corporations, LLCs, LLPs, general partnerships, and limited partnerships. She also handles 1031 exchange tax planning and other real estate matters, including purchase and sale agreements, due diligence reviews, and leases.
Connect with Tamara Pow:
Connect with Alay Yajnik:
One Page Strategic Plan: LawFirmSuccessGroup.com