You tried to resolve your business’s dissolution through negotiation and without litigation, but now it just does not seem possible. The disagreements between you and your business partner have become heated. Your relationship is now untenable due to rising disputes. With honesty in question, forget about reasoning. You conclude that a settlement would be a waste of time.
Bad blood in business partnerships can surface in a number of ways. Examples may include breach of fiduciary duty, misaligned goals, competing visions, ineffective decision-making, lack of trust, personality differences, unequal commitment from either partner, missed sales and revenue goals, and poor relationships with clients.
A business prenup and effective attorney can help
A nasty business dispute can be avoided as long as you prepare beforehand in a philosophy similar to a prenuptial agreement in marriage. That is why it is crucial to create a business prenup, which is essentially a shareholders’ agreement, operating agreement or buy-sell agreement.
Without any of these legal agreements in place, you and your business partner are destined for a painful business divorce. Seeking the guidance of a problem-solving and effective business attorney can help you overcome any complex matter related to a business break-up.
Not good: combining personal and business relationships
Business partners also must be careful to avoid combining personal relationships with business relationships. Many examples of such business break-ups include married business partners going through divorce or best friends gradually having different visions. Both relationships end.
Most business partnerships do not last forever. Yes, it is difficult to survive a business break-up, but there always is a second chapter. Some entrepreneurs who experience a business split, shrug their shoulders, dust themselves off and dive into their next idea. No matter what, they always will be risk-takers.