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Key Takeaways Understanding the legal, financial and emotional steps involved can make the difference between a clean transition and a costly dispute.
When a business partnership breaks up, it can get messy, even if all the parties involved have the best intentions. Thankfully, I’ve never personally gone through a partnership breakup, but as the CEO of CorpNet, I’ve handled more than enough of them up close.
And I can tell you this: When a business partnership falls apart, it can get messy quickly. Emotions rise, communication breaks down and suddenly, what started as a shared vision becomes a costly dispute where nobody truly wins.
In this article, I’ll show you how to set up your business and handle a potential breakup, so you can avoid unnecessary conflict and keep things out of court.
Write it down
No matter what stage your business or partnership is at, you need a shareholders’ agreement and clearly written contracts. I know some people like to operate on a “handshake deal,” but trust me, it’s always better to have everything clearly written down on paper.
Even if you’ve been operating for a while and for whatever reason you don’t have a clear agreement with your business partner, you can use this article as an excuse to bring the subject up with them. It’s never too late to put a formal agreement in place.
Lastly, it’s always important to have a third party draft these documents for you. Fortunately, there are expert services designed to simplify the process, making it both easy and affordable. This not only ensures everything is properly structured but also helps prevent misunderstandings, disputes and costly legal issues down the line.
When should you call it quits?
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