Minority vs. Majority Partners

Business partners

Minority vs. Majority Partners

“Mark Ferrier held minority ownership in a marketing agency called TRAFFIKGROUP. The company was eventually acquired by a private equity group in an eight figure exit,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “This episode shares Mark’s legal challenges with his partners and how to protect your reputation during a lawsuit.”

Mark Ferrier built the marketing agency TRAFFIKGROUP to more than $2 million of EBITDA before it was acquired by the private equity group Onex in an eight-figure exit. In this first of a two-part interview, Mark shares the story of how he got started in the marketing agency world and how a rift with his former partners left him on the wrong end of a $2 million lawsuit. You’ll learn how to:

  • Get alignment with your minority partners.
  • Buy out your partners (without sabotaging your business).
  • Use a shotgun clause in your shareholders agreement.
  • Distinguish between non-compete and non-solicitation agreements.
  • Protect your reputation during a lawsuit.
  • Structure your partnership agreement to protect the value of a service business in a dispute.

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