Buying Out or Selling Out
Another alternative if your business partners splits or wants to end the relationship is to arrange to buy out your partner or sell out completely to him. This way, the business can continue as before, with just the management structure changing.
You could also decide to completely sell out the business and split the proceeds as per your original agreement or understanding and walk away from the business altogether.
You can of course decide to go to court and let a judge decide on the matter. This is an alternative that can be quite demanding in legal costs and may not get you any real benefits, as judges generally prefer to rule on a fifty-fifty allocation of assets if no earlier agreement is in place.
A court battle could affect your business negatively and take a long time to settle. If you do feel the need of some outside intervention, see if you can agree on a mediator or arbitrator and leave the job to him. This would take less time and cost you much less.
To keep your partnership interest safe, when you and another person or entity decide to form a partnership, invest in the cost of a business attorney who can draw up the agreements so all parties must follow the agreement to the letter. Finally, if your business partner splits without notice, if you have a written agreement, you may need to hire an attorney to not only help find your partner, but make him responsible for his partnership obligations.
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