When you’re operating a business in Massachusetts with one or more partners and things are going well, you’re likely making profits and clients are happy. Unfortunately, internal disputes can occur that cause problems. In this situation, various remedies exist as a resolution, including business litigation, mediation, buying them out or selling to new owners.
Using a mediator to reconcile differences
If the differences between you and your partners can be resolved by communicating with each other, you may want to use a third-party mediator. They have the skills needed to help resolve each difference, which may assist in creating a stronger partnership.
Buying out a partner
In some business partnerships, you may decide that the best course of action to settle your differences is for one of you to buy the other partner out. When this occurs, a valuation must be determined for the business interests of the partner being bought out.
Selling out to new owners
If you and other partners have tried to resolve disputes and can’t agree on a solution, all of you may decide to sell the business to new owners. In this case, a competitor or employee may be interested in purchasing the business interests of each partner.
Using business litigation to sue another partner
Unfortunately, the differences between you and another partner may be severe enough that it requires business litigation. Suing another partner may be necessary if they’ve breached a fiduciary duty through self-dealing, which acts contrary to your business partnership’s interests. Some common lawsuits between partners are due to fraud or the misappropriation of assets.
If you’re facing differences in your business, it’s best to discuss them and see if they can be resolved quickly. Otherwise, litigation and other methods are available to deal with the situation.