The relationship between business partners is not just professional. It is also deeply personal. Partners have to trust one another to be honest. They both have to prioritize the company’s best interests above their own enrichment or personal desires.
They likely rely on one another for the continued successful operation of the company. Unfortunately, disagreements about the future of the company, failure to follow through on contractual obligations and personal conduct can lead to strained relationships between business partners. In some cases, a business divorce or buyout might be the only option. However, partners can potentially reconcile and continue working together after a major disagreement.
The three options below could help business partners overcome a dispute for the benefit of their shared company.
1. Address misconduct or contract breaches
Sometimes, the simplest solution for improving the dynamic between partners is to identify and address what caused the conflict. If one partner hasn’t worked the hours they promised or made the appropriate financial investment in the company to ensure its success, they can theoretically correct that oversight at any point. Doing so could help improve the state of the partnership.
2. Rework the partnership agreement
Factors ranging from changes in health to a divorce that creates scheduling pressure due to shared custody obligations could impact a partner’s job performance. When personal circumstances or capabilities change during a business partnership, the partnership agreement may require revisions as well.
The partners can reassess what they both intend to provide for the company and expect to receive in return. They can even rework their buy-sell agreement in case the situation doesn’t improve and a buyout becomes necessary.
3. Attend conflict mediation
Mediation can be a way for partners to work through a dispute and compromise to resolve the issues they face. By working with an outside professional, partners can keep communication as calm as possible when discussing their current disagreements.
When partners feel as though working together has become impossible, a mediator could help them see eye to eye and communicate more effectively. In some cases, a little bit of grace from each partner may be all that is technically necessary for them to continue working together and to preserve the business that they established.
Exploring every possible option for resolving partnership disputes can help people prevent a buyout scenario or recognize that a buyout is the only way to preserve the company when conflicts impact the dynamic between partners. Those seeking to protect their interests and the company that they started may require legal support as they prepare for a buyout offer or attempt to improve the relationship they have with their partner, and that’s okay.