LAVAN Investments · Partnership structures
The structure follows the opportunity.
Four ways LAVAN works with a business or a partner, when each one fits, and what is agreed in writing before any of them begins.
Four structures
From working together to owning together.
They are listed in order of commitment. Many relationships start with the first.
- Commercial partnership
- Working together on a defined opportunity, with no ownership stake. It fits when the opportunity is specific and both sides want to test the relationship first.
- Minority stake
- Ownership alongside the founders, with agreed governance and reporting. It fits when owners want a long-term partner and intend to keep control.
- Joint venture
- A new entity built with a partner around a specific market or capability. It fits when neither side could pursue the opportunity alone.
- Acquisition
- Majority or full ownership. It fits when it serves the business and its people, for example where a founder is planning succession.
Forming a partnership
How it comes together.
- 01
Introduction
A short description of the business and the opportunity. No documents yet.
- 02
Mutual evaluation
Each side decides whether the other is a partner it wants. Sensitive information is shared only under a confidentiality agreement.
- 03
Structure and terms
The structure is chosen to suit the opportunity, and the terms are set out plainly.
- 04
Governance
Decision rights, reporting and how disagreements are resolved are agreed before work starts.
- 05
Review
Agreed points at which both sides look at whether it is working.
Before we begin
What is agreed in writing.
- 01
Roles
What each party contributes, and what it is responsible for.
- 02
Decision rights
Which decisions are shared, and which belong to one side.
- 03
Information
What is reported, how often, and to whom.
- 04
Economics
How value is shared, and what each side puts at risk.
- 05
Conflicts
Any overlap with LAVAN’s advisory or credibility work, and how it is handled.
- 06
Ending it
How either side can leave, and what happens if they do.
For a prospective partner
Five questions worth answering first.
We will ask them. It helps to have thought about them.
- 01What do you want this business to be in five years?
- 02What are you not willing to give up to get there?
- 03What do you need from a partner other than money?
- 04Who else has a say, and do they agree?
- 05How would you want a disagreement between us to be settled?
Any partnership or investment is made only under signed written agreements. Contacting LAVAN is not an offer to invest or a financing commitment.