Working together in business is an ideal method of bringing the best out of yourself and your partners. Often, partnerships create an end result that is greater than the sum of their parts. However, partners must remain on good terms.
Like in any other interpersonal relationship, business partnerships can also break down, sometimes very quickly. When money and status are at stake, business owners are renowned for being ruthless. It has led to the spectacular dissolution of many a partnership, which apart from breaking up firms, have broken up long-standing friendships.
At VS George Lawyers, we know how to work among these tricky landscapes. We realise that in some cases, such disputes are all but unavoidable. However, we would also submit that there are methods of ensuring that these problems could be avoided.
First, an exit strategy must be worked out when the firm is developed. While the ribbon-cutting ceremony will surely bring everyone together in their shared vision, it is essential to realise that such a situation may not last. Ensuring that each team member has the legal means for a smart, organised exit from the firm keeps us from being obliged to argue during the more emotional time that accompanies a breakdown in relations.
Secondly, it is vital that such arrangements are vetted by a qualified attorney. The essence of such agreements is that they are unable to be shredded when a relationship breaks down, and that they hold true to the letter of the law from where you stood when the firm was put together. Knowledgeable franchise and business lawyers can keep your Sydney firm from being obliged to work out these details again, under the duress of a partnership dispute.
Lastly, it is vital to keep emotion out of your discussions. If even this step is difficult, a mediator can be a wise inclusion in the proceedings. They can ensure your case is presented in a neutral fashion, keeping you both on-topic, and solving the issue more quickly, without exacerbating tensions.
While these might seem painful at the time, many a firm has subsequently wished that they had taken these steps before things went sour. Hedge your bets with Sydney’s experienced business and franchise lawyer team at VS George.