If you and your business partner cannot come to an agreement regarding the sale of the business or the division of its assets, you have several legal options available to you.
- Mediation: Mediation is a process where a neutral third party helps both sides to reach a mutually satisfactory agreement. It can be a cost-effective and efficient way to resolve disputes without going to court. However, mediation is non-binding, meaning that either party can choose to terminate the mediation process at any time.
- Arbitration: Arbitration is similar to mediation, but the role of the neutral third party is different. In arbitration, the arbitrator acts more like a judge and makes a binding decision that both parties agree to be bound by. The decision is usually final and cannot be appealed.
- Litigation: Litigation is the process of resolving disputes through the court system. This process can be lengthy and expensive, but it may be necessary if mediation or arbitration fails to resolve the dispute. It is important to note that the court’s decision may not be in favor of either party or may not be what either party expected.
- Buyout: If one partner wishes to retain ownership of the business, they may offer to buy out the other partner's share. The value of each partner's share can be determined through negotiation, mediation, arbitration, or by hiring a business valuation expert.
It is important to note that the options available to you will depend on the terms of your partnership agreement, if you have one. The partnership agreement may outline the process for resolving disputes and may provide specific methods for the sale of the business or the division of its assets. It is recommended that you consult with an attorney to review your partnership agreement and provide legal advice regarding the best course of action for your particular situation.
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