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Protecting yourself when involved in a partnership dispute

On Behalf of | Dec 9, 2022 | Business

As a business owner, you worked diligently to build your company from the ground up, and you understand the sacrifice it takes to simply reach a level of success and profitability. If you took this journey alongside a business partner, you are probably familiar with the difficulty that can come with working closely with someone else. There are times with the close relationship between partners breaks down, and it can ultimately impact the health of the company.

Disputes between Texas business partners are much more than just an inconvenience. This is an issue that may negatively affect your business operations, and it is important to seek a conclusion to any ongoing problems so that you can continue to run your business. Partnership disputes do not always have simple conclusions, and it is in your interest to seek an effective resolution as quickly as possible.

Stop a harmful cycle

Partnership disputes can start for many different reasons. It is not always easy to work closely with someone, and personality clashes can grow into serious problems that impact professional relationships. When facing this problem, you know that the simplest approach is to attempt to resolve it outside of the courtroom, but this is not always an option. Possible ways to resolve a partnership dispute include the following:

  • Buy-out – If it is clear that working together is no longer an option, it may make sense to offer the other partner a buy-out that would end the relationship while preserving the business.
  • Mediation – Seeking professional assistance from a mediator to work through issues and reach resolutions to ongoing concerns may be an effective way to improve your working relationship with your business partner.
  • Sell the business – Due to the severity of the issues between you and your partner, as well as other factors, it makes the most sense to sell the business outright and start again.
  • Litigation – In some situations, the dispute between partners is unresolvable, and there may be ongoing legal concerns as well. In this case, litigation may be the only reasonable way to move forward.

The ultimate goal when pursuing a reasonable resolution to an ongoing partnership dispute is to protect the best interests of the business above all else. Whether you and your partner will continue to work together or one of you will move on, you will benefit from considering what makes the most sense for your professional and financial future.