If you own a company with a partner in Michigan, it’s important both of you agree on a plan for moving forward while following appropriate business law practices. When you’re having significant trouble agreeing about a particular issue, solutions are available.
Selling the business
In some business partnerships, settling a dispute isn’t possible, and both parties might feel it’s best to sell the business. If you’re in this situation, it may be time to look for an outside party who would want to purchase the company. One option is considering a competitor who wants to expand their product or service line.
Buying out a partner
A buy-out is another option when both of you can’t continue on as business partners. It’s a solution that could work especially well if one of you wants to retire or move on to another endeavor. If the business is doing well and both of you want to see it continue, this option is ideal.
There are instances where, unfortunately, the best solution is litigation. This is especially true in the case of at least one partner who, unbeknownst to you, committed illegal activities, such as fraud or other actions that don’t abide by legal business law practices. Suing your partner and severing ties with the business may be the only option.
A third-party mediator may be able to help you and your business partner come to an amicable solution when the two of you are unable to do it together. Going this route lets you settle your differences and (hopefully) keep the business going. This option can sometimes create a strengthened business that moves in an even more prosperous direction.
Working with a business partner requires trust, communication and cooperation. When disagreements occur, choosing the appropriate solution can benefit both of you and the company.