No matter the type of relationship, it is common for difficulties to arise and, in some cases, for two people to decide to go their separate ways. Business relationships are no different, and business partnerships can end for many reasons. Though the end may be inevitable, it does not mean that Florida business owners have to simply watch their company dissolve.
Certainly, ending a business partnership brings an end to the company as it currently is, but one of the partners could choose to take over the company on his or her own. When going through a partnership dissolution with this desired outcome, it is important that the buying partner, if a buy-out is taking place, knows how he or she will finance the buy-out. Having cash would be ideal, but that is not always an option. Knowing ahead of time could prevent last minute purchase issues.
It is also crucial that each partner considers his or her own interests during this endeavor. Some ways to protect those interests include:
- checking company accounts, bookkeeping records and other applicable documents to ensure that one partner is not mismanaging funds or causing other damage
- reviewing the partnership agreement to refresh one’s memory on the terms and any clauses relating to partnership dissolution
- talking with the other partner to find out how he or she thinks the dissolution should move forward
- asking for help from financial and legal professionals to determine best options
Dissolving business partnerships can become complex legal affairs, but if everyone involved agrees it is the best option, the process may go smoothly. Of course, it is always best to be prepared for worst-case scenarios, so Florida business owners facing this predicament may want to ensure that they understand how to best protect their interests and that of the company. Preparing for the worst could make it much easier to handle any conflict that may arise.