Partner - Manufacturing - Sales

Discussion in 'Growing and Managing a Business' started by greenone, Jun 21, 2012.

  1. greenone

    greenone
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    Hi,

    I have developed a line of effective and unique cleaning creams. An investor who has made millions by making auto parts has proposed a partnership.

    I would like your thoughts. I need some "extra eyes" looking at this scenario that I have not finalized yet.

    He is proposing that his current tool & die company manufacture the line of products as he can purchase huge quantities of ingredients and packaging to drastically reduce the "end" products.
    I would not be a part of that company.

    He proposes that sales of the products be done through a "sales" company that I would be a shareholder. I would want preferred shares, non-diluteable, etc.

    I would suggest that the intellectual property, trademarks, patents, belong to the sales company and an exclusivity and non-compete contract to him for manufacturing of the product line.

    Does anyone have any ideas, suggestions or problems they might see with this set up?

    What are your thoughts, suggestions??

    Thanks folks
     
  2. Fergal

    Fergal
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    Would it be possible for you to personally keep ownership of those rights, rather than transfer them to the jointly owned sales company? That way if things go wrong with your new partner you will still own those rights (possibly your most valuable asset) and can then look for a new partner.
     

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