Business relationships are like any other relationship, they breakdown from time to time. In our experience it is common for business partners to have disputes and those business disputes often become untenable.
If a business relationship breaks down, it causes significant stress and disruption, not only to the business but financially and emotionally for the business partners.
So, what should you do if your business relationship is breaking down?
- Step 1 – Get your house in order.
Before you take any action, you should know exactly where you and your business partner stand financially, legally and structurally. It is important to understand the structure of your ownership model (partnership, company, trust or joint venture), what rights you may have and what rights your business partner may have.
- Step 2 – Communicate with a view to repair
More often than not, business relationships breakdown due to a lack of honest communication. Create a non-threatening environment for you to sit down and discuss the issues causing the breakdown. This requires all parties to check the emotion and ego at the door and listen. This is easier said than done.
- Step 3 – Plot a path going forward
If the business relationship cannot be salvaged, an exit strategy should be formulated and negotiated. This strategy can take several forms including splitting the business activities, restructuring the ownership model, the sale of an interest or the entire business itself.
No two businesses are the same and each business relationship breakdown is different with its own complexities.
Our Business Relationship Breakdown lawyers have extensive experience in resolving business disputes and breakdowns between business partners. We have a unique approach that is based on the perfect combination of influence, rationality and practicality backed by enforcement of the law.
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