No matter how like-minded you and your business partner are, disagreements are still bound to happen from time to time. Often, you can find a solution that allows business to continue as usual. However, some disputes create deep rifts that are more difficult to overcome. If you and your business partner find yourselves at an impasse, here are several options that could help you move forward.
If you and your partner’s relationship has degraded to the point that you can no longer work together effectively, one potential solution is stepping back. This could mean one of you leaving the venture or both leaving and hiring an outside person or people to run the business.
Buy them out
Another potential solution is for one partner to buy out the other one. A buyout can be quite an undertaking. You’ll need to get an independent business valuation, hire an accountant, get legal representation, negotiate the terms of the buy/sell agreement, and secure financing.
Sell the business
Liquidating your assets and selling the business altogether could also be a last-ditch effort. Deciding to close up shop can be emotional, and it’s not most business owners’ first choice. However, when you and your partner’s relationship has irretrievably broken down, and there’s no other option, it can be an opportunity to start over. You can use the proceeds from the sale of the business to start a new venture on your own or with a new business partner with whom you are more aligned.
Talk to a business litigation attorney
Getting legal help from an experienced business litigation attorney could uncover more options that allow you to move forward from a business partner dispute. It’s never easy to cut ties with a business partner and potentially walk away from the business entirely. But with an attorney looking out for your best interests, you can rest assured you make the right decision for your circumstances.