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Business Breakups

When you are starting a new business with a partner, the last thing you are probably thinking of is how that partnership will end. You are just starting out, but you should consider the possibility. According to the researchers at The Statistic Brain Research Institute, anywhere from 20 percent to 30 percent of startup partnerships end in a breakup. Breaking up a business is usually complicated and often emotional. Experienced, considerate counsel can make all of the difference between a prolonged and expensive litigation with a poor outcome, and a prompt and reasonable resolution.

Disputes among co-owners of a business – whether they are partners, members of a limited liability corporation or shareholders – can include disagreements over operating responsibilities, the division of assets and liabilities, ownership of intellectual property, future competition, and future ownership and management after a break-up. Our commercial attorneys will assist you in protecting your interests, help you understand any existing contracts, obligations and liabilities, and help you comply with the legal and regulatory requirements of dissolution.

If your business venture is threatened by an impending partnership dissolution, you need to speak with a corporate litigation lawyer at Burg Simpson today by calling 800-544-5484.

Hire a lawyer with a proven track record of success.

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Signs a Business Breakup Is Imminent

There are few signs entrepreneurs can look for that might suggest a business breakup could be on the horizon, such as:

  • Communication breakdown: Communication is critical in any relationship, whether it is personal or professional. When communication starts to break down – the emails taper off, the meetings fall off the calendar, and major decisions start to get made independently – it might be time to re-evaluate the partnership.

  • Fundamental differences: Disagreements are not unusual. They are an unavoidable part of every relationship. But when those differences become more blatant and when they infiltrate fundamental aspects of the partnership, such as long-term business goals and core values, they can make collaboration that much more difficult.

  • Disparity of workloads: Vaguely defined roles can often lead to a difference of work responsibilities. Maybe it is one partner who cannot seem to delegate any responsibilities. Maybe it is a partner who refuses to carry his weight, skipping client meetings or conference calls. Either way, when partners are not working together or sharing duties equitably, divisions can emerge, threatening the relationship.


If you think your partnership is at risk, talk with one of the commercial litigation attorneys at Burg Simpson as soon as possible. Call us now so we can help assess your situation!

How to Prepare for a Breakup




Any knowledgeable business advisor will tell you the old adage is true when it comes to starting a business: Hope for the best, plan for the worst. It might sound counterintuitive, but when you draft your business plan, you should also map out your potential dissolution. It should be included in your original partnership agreement. This agreement – and exit strategy – should be drafted with multiple options in mind, such as a buyout clause, a replacement provision, or even a liquidation strategy, for a few examples.

These plans should not be drafted on your own. Effective legal counsel is the only way to put together a reliable partnership agreement. If you are about to enter into a partnership agreement, do not sign anything without consulting an experienced corporate litigation attorney. Call us today at 800-544-5484 so we can ensure that you are protected if the worst happens.




A BURG SIMPSON COMMERCIAL LITIGATION ATTORNEY CAN HELP


Resolving disputes, short of expensive litigation, is almost always preferable but we realize that is not always possible. Because Burg Simpson’s corporate litigation attorneys are well-known as trial attorneys, we bring that leverage and experience to your negotiations, helping you avoid and resolve disputes before they reach the courtroom, if possible.

When a business dissolution escalates to litigation, Burg Simpson’s experience, strength, and resources are available to powerfully advocate the client’s position to the judge or jury.

Call us today at 800-544-5484.

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