It’s hard to anticipate if a business partnership will last forever. Bonding over a business vision can be powerful stuff, but when things don’t go as planned, it can be equally devastating. Knowing how to end things in the best way to ensure that reputations remain untarnished and bridges are left standing.
If you’re considering the end of a business deal or partnership, here’s a list of the things you can do to ensure that the separation is legal and amicable.
Legal advice
As part of your preparation strategy, it’s a good idea to ascertain your legal responsibilities within the partnership and what happens when you leave. There are a number of legal terms that come into play, especially if there is IP involved and legal counsel can save you the headache of trying to figure it out on your own.
Gather as much information as you can to inform yourself before making any hasty decisions. You can get fast and convenient access to all kinds of legal information, including legal resources from Net Lawman. They also have a large library of legal document templates to suit your needs. Start to ask yourself the hard questions and prepare for the unexpected.
Establish your priorities
Determine the outcomes of negotiation or parts of the business matters that are important to you. When you know what is important to you, you’re less likely to make superficial decisions. Think about decisions that you’ll be happy about in the years to come following the split.
This is where reevaluating the initial business agreement is important. Your initial intentions may have been forgotten over the years and you might want to reinforce them in terms of a buy-out agreement. You’ll also have a better idea of where you stand legally and will inform the terms going forward in the split.
Be professional
Business partnerships can be tricky, especially when you or other parties are not on the same page. But, that shouldn’t be cause for irrational or juvenile behavior. Remember, your conduct in any business relationship can affect future engagements and if it is clear to potential partners that you can’t show maturity, it could harm your future.
So, try to conduct the split as professionally as possible. If you feel that there is no way for you to do that, appoint a mediator who will be able to resolve a conflict that may arise. It’s important that both parties are aware that a mediator will be present so as not to raise more conflict and to prevent either party from going on the defensive.
A dissolution agreement
Just as a partnership agreement sets out the parameters of a business relationship, a dissolution agreement sets out the terms of a separation. There are different types of agreements to dissolve a partnership and it’s imperative that both parties decide which one suits their situation best to avoid any further legal dispute.
Dissolving a partnership doesn’t mean that the business is at its end. Depending on the agreement, the time frame for the actual split can take a while. If there are any remaining debts, they need to be settled and final taxes are to be paid.
Get professional assistance
Separation of any kind can be stressful and, in some cases, explosive, even if you may have known your business partner for years. Communicate only when you feel calm and try to detach emotion from the process to remain rational when leaving a partnership.
Prevention is certainly better than cure when it comes to business dealings and you don’t want to be caught off guard if there are unexpected disputes or disagreements. Hiring legal and financial professionals can be incredibly helpful during this process to prevent any mishaps.