A business partnership can be a great thing. You and your partner can share the financial risk, team management and overall pressure of running a company. That being said, a business partnership can be a burden if it goes south.
If you find yourself in this position, you may be looking for a way out of a 50/50 partnership. This process can be complex and much of it will center on the structure of your company. You’ll need to look closely at your partnership agreement and identify whether or not there are clauses that concern dissolving the partnership. While working with an experienced legal professional to unravel the legal side of things, the following tips can be beneficial.
Animosity won’t help
A breakdown in a business partnership isn’t necessarily personal. You and your partner may just have a different outlook now in terms of the company. Thus, if you can keep a friendly but professional tone, this should help matters progress in smoother ways
Don’t act hastily
Dissolving your business partnership is a huge decision that could have both positive and negative impacts on your company and your finances. Therefore, it’s important not to make any rash decisions. Be clear in your vision as you move forward.
Use what you have
It may be possible to dissolve your partnership without pursuing litigation. Make sure you have reviewed all relevant legal contracts such as your partnership agreement, as only some partnerships must be dissolved via judicial intervention.
Obtain an accurate business valuation
An amicable dissolution is always best. To succeed in this both partners will need to walk away with their fair share. Getting an accurate valuation of the business is a fundamental part of this process.
Dissolving a business partnership can be a complex process and it isn’t something you should take on your own. We help companies struggling as a result of partnership disputes. Contact us to learn more.
