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Is there a general rule of compensation for an outsider bringing companies together that results in a partnership?


Asked by cjbus11
Posted: Tuesday, September 04, 2007  |  Found in Business Opportunities


More answers by Tim Berry
Answer by Tim Berry
No, there is no general rule, you're in wonderland. You can't solve this riddle with an established formula. You have to use common sense and gut instinct and if you have the benefit of somebody else with experience in this area, ask them. Do you have an attorney with small business experience? An accountant? These are shark-infested waters, so don't go in there alone.

While not general rules, here are some tips that might help: Call this a finder's fee and do a web search on finder's fees, and discussions of finders fees. It better not be very much. Most people who bring others together, resulting in a partnership, do it out of good will, networking, and assuming that a favor will be returned later. There isn't much economic value there. If you pay too much, the partnership fails because of it.

Tim
Tim Berry is the president of Palo Alto Software Inc., which produces the industry's leading business planning software, Business Plan Pro, as well as other popular planning applications for businesses.


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