Advice on Partnerships

[Jay Moreland]

I would like to be able to share expenses and work on my experimental
aircraft now and in the future. I would like to have a partnership with
several others both to build and to operate an experimental 4 to 6 place
aircraft. Perhaps, especially in building, this is not advisable. I
would like to find out if there are any materials on line, or in print,
that detail the pitfalls and pratfalls of experimental aircraft
partnerships.

I am already a partner in a 172 with five others...perfect for cost
sharing, but I want the experimental experience/performance etc.
Jay Moreland

[Richard Riley]

On Tue, 30 Dec 2003 22:38:59 GMT, Jay Moreland
> wrote:

:I would like to be able to share expenses and work on my experimental
:aircraft now and in the future. I would like to have a partnership with
:several others both to build and to operate an experimental 4 to 6 place
:aircraft. Perhaps, especially in building, this is not advisable. I
:would like to find out if there are any materials on line, or in print,
:that detail the pitfalls and pratfalls of experimental aircraft
:partnerships.
:
:I am already a partner in a 172 with five others...perfect for cost
:sharing, but I want the experimental experience/performance etc.
:Jay Moreland

The best advice I can give you is have an exit strategy. I got into a
situation where I needed to get out of a partnership, and my partner
wouldn't sell his half or buy mine. Finally he offered me $13k (my
half was worth about $18k). I accepted, and he dropped it to $10k. I
offered him $15k for his half, he refused. I threatened lawyers, he
came back to $13k and I got out.

Have in writing a buy/sell option. The partner that wants out names a
price, the other decides if he wants to buy or sell at that price.
That keeps it fair.