Running a company with a partner is advantageous when both individuals see eye to eye. As soon as their visions no longer match, thorny disputes may arise.
If the disagreements are sharp, these arguments can escalate. The upshot may be one partner suing the other. If your former associate is initiating legal action against you, your reaction can affect how the matter unfolds.
Tip 1. Initiate conversation
Although it might seem counterintuitive, try to maintain open lines of communication. A frank chat could square away the situation. Ensure that all interactions are professional, and meticulously record them, as these discussions could be relevant in the future.
Tip 2. Review your agreement
Hopefully, you have a partnership agreement in place. Such documents outline how to handle intercompany conflicts. Review yours carefully to understand your rights and obligations under the circumstances. Beware that legalese is sometimes challenging to interpret.
Tip 3. Seek advice
Getting a second opinion from a trusted mentor or experienced business advisor can provide valuable perspective. These professionals will offer unbiased guidance on how to proceed and suggest strategies for resolving the feud amicably.
Tip 4. Consider mediation
Mediation involves a neutral third party to help both sides discuss their problems and reach a voluntary understanding. This path tends to be less adversarial and more cost-effective than going through a courtroom battle. While both parties must agree to mediation, it can lead to a mutually beneficial outcome.
Tip 5. Prepare for all eventualities
Finally, ready yourself for anything. Possibilities include dissolving the partnership or buying out the other person’s share of the venture. Knowing the consequences of every choice will help you make wise decisions.
The prospect of facing down your former business partner in a legal setting is highly unpleasant. Fortunately, a savvy approach can speed up the process or even eliminate the need to go before a judge.
