

Ep 483 Exit Story: Frank Shultz on Escaping the 50/50 Trap and Buying Out a Partner
19 snips Feb 28, 2025
Frank Shultz, co-founder of Infinite Blue and currently with United Effects Ventures, shares his journey through a challenging 50/50 partnership. He discusses the complexities of buying out a co-founder amidst disagreements and financial strains. Listeners learn about the critical importance of business continuity planning and the emotional hurdles tied to partner dynamics. Frank also reflects on navigating growth, leadership restructuring, and the impact of market conditions during acquisitions, all while emphasizing communication and strategic decision-making.
AI Snips
Chapters
Transcript
Episode notes
Dangers of 50/50 Partnerships
- Frank's 50/50 partnership rapidly soured as roles and responsibilities diverged.
- Discontent led to tension that adversely impacted employees and product development.
Avoid 50/50 Without Protection
- Avoid 50/50 splits without deadlock resolution clauses in operating agreements.
- Use proper legal structuring upfront to protect against future partnership conflicts.
Buying Out Partner With Investment
- Frank bought out his partner using outside capital for an eight-figure valuation.
- He secured an investment round that bought almost half the business ensuring majority control for Frank.