While you probably had a fantastic run with your business partner, there may come a time when you need or choose to run the business solely on your own. Parting ways with a long-term partner can be complex without the right guidance. A good commercial lawyer will help you follow these key actions to split amicably with your business partner.
Review The Existing Business Partnership Contract
If you and your business partner created a contract to stipulate certain terms and conditions, then this would be a good time to review it. The contract will likely contain steps to follow in case one partner decides to exit from the business. While every issue cannot be addressed in the contract, it will likely serve as a good platform for exit discussions. For example, the contract may contain details about how the exit of a partner should be handled and the percentage of compensation to be paid out in the event of a split. Following the stipulations of the contract will eliminate any room for a major disagreement. Your lawyer can handle the details of the exit upon review of the existing contract.
Consider Meeting Your Partner's Demands Halfway
While the reason for the decision to split may not necessarily be friendly, it's important to keep in mind that the legal bills could cost you tens of thousands of dollars, apart from taking up a lot of your time. Instead of putting yourself through the grind, it's much smarter to meet your partner's demands halfway. For example, if your partner is expecting a certain payout for exiting the business, be reasonable and consider the cost of litigation. You may likely find it more cost effective to pay out your partner and move on with the business instead of letting the matter go to court.
Avoid Making Decisions Without Checking In With Your Lawyer
While splitting with your business partner may result in a range of emotions, it's important that you avoid rash decisions without checking in with your lawyer. While you may feel angry about a certain situation or demand from your business partner, don't make any decisions in the heat of the moment. Your best option is to consult with your lawyer and plan your responses in a carefully considered manner. Making spontaneous decisions or responding harshly will likely have undesirable consequences for you and your business.
While splitting from your business partner can be tough, follow these key actions for an amicable break up.