Launching and maintaining a successful company involves natural risk. Business partnerships can often strengthen a company’s industry standing and potential for growth. However, growth inevitably means change, and co-owners may not always agree when it comes to decisions regarding the company’s future.
Left unresolved, even minor conflicts may lead to a major dispute that could threaten a business’s present and future success. Owners facing an operational disagreement have several options if they would like to preserve their company’s viability.
Partner buy-out
Partners may decide that, while they have irresolvable differences, they would like to see the business itself continue. In this case, partners who want to keep ownership may buy out co-owners in dispute. This may occur either under an existing buy-sell agreement or following a company valuation and negotiation between parties.
Sale to new owners
In other cases, none of the present owners may want to remain involved in company operations, but they would like to preserve a viable business. Finding a buyer willing to purchase the entire interest in the company may be a good option in this instance.
Business mediation
Third-party mediation is an important alternative for partners who would like to maintain a business relationship while resolving current conflicts. Under mediation, a neutral advisor may help parties to pinpoint areas of dispute, foster constructive communication and devise unique, mutually satisfying solutions.
Litigation may be necessary in cases where a partner or partners have engaged in extraordinary negligence or criminal behavior. However, for many business owners, avoiding a lawsuit and preserving business success may be preferable to the potential expense and publicity of going to court.