Frank Shultz on Escaping the 50/50 Trap and Buying Out a Partner
- Kyle Winder
- Mar 3
- 2 min read
Updated: Mar 5
About this Episode
When Frank Shultz co-founded Infinite Blue, he and his partner split ownership 50/50. The business thrived, but their working relationship soured. Frank wanted to buy out his co-founder, but with a valuation in the eight figures, he faced a daunting question: where would he get the cash?
In this episode of Built to Sell Radio, you discover how to:
Structure a buyout when you don’t have the funds
Avoid the biggest mistake founders make in 50/50 partnerships
Handle a lawsuit with a former employer while trying to build a business
Attract investors while maintaining control of your company
Negotiate a walkaway deal with no earn-out
Frank’s story is a must-listen if you’ve ever considered bringing on a partner—or buying one out.
About Our Guest
Frank Shultz
Frank Shultz is the founder and CEO of Infinite Blue, a leading platform for business continuity and disaster recovery planning.
With over two decades of experience in the technology sector, Frank has been instrumental in developing solutions that help businesses navigate operational disruptions effectively.
Under his leadership, Infinite Blue has empowered numerous organizations to maintain resilience in the face of unforeseen challenges. Frank’s commitment to innovation and excellence has established him as a trusted authority in business continuity planning.
Definitions
Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.
Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.
Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.
TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.
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