It’s not always true that good things must come to an end, but it is frequently true of business partnerships. Collaborations that once seemed promising can come to an end as a result of mutual agreement, heated animosity, or something in between, but one way or another the process needs to be addressed legally.
A business partnership is formed by contractual agreement, and that agreement needs to be dissolved in a way that addresses all legal matters and answers all legal questions. Though it is common for partners to turn to attorneys for help navigating the process, there are many situations where working with a mediator may be a better answer.
Mediation of a partnership breakup offers many advantages over a traditional litigation procedure. When partners turn to the courts for help in dissolving their business arrangement, they are taking a risk that the decisions that the court makes will be to their benefit. That is not always the case, and there have been many litigants who have regretted having placed decisions about their future in the hands of professionals with no familiarity of their business operations. Additionally, working with attorneys to fight over details can be very costly.
By opting for mediation, business partners allow themselves to have a voice in the process and to find a way to meet in the middle. Not only is the process far less costly, it is usually much less time-consuming. There is no need for trial preparation or waiting to get onto a busy court schedule. Disputes can easily and confidentially be resolved, and when mediation fails, the opportunity to turn to the courts still exists.
Choosing to pursue mediation for dissolving your business partnership offers benefits that go beyond efficiency and maintaining control of the process. A mediator’s role is to serve both sides in a conflict, effecting a resolution that meets the needs of the partners as well as the business. It will work to preserve the entity, its reputation and its business relationships, making sure that everybody’s voice is heard and recognized and that rather than ending with a “winner” and a “loser”, the mediation leads to all sides having achieved at least some of their individual goals.
If your business partnership has reached the end of its life and you need information about mediation, we can help. Contact us today to learn more about our mediation services.