You can’t always expect relationships to last forever, and that includes your professional relationships. However, business relationships are not always so easy to sever, especially when you’re partners in a business together. Irreconcilable differences are sometimes unavoidable between business partners, which can make it difficult for the business to operate efficiently. When it’s impossible to work things out and prioritize the business’s best interests, a forced buyout may be necessary.
A forced buyout is something no one wants to put their business through, but it sometimes must be done. Partner disputes can occur for many different reasons that may result in forced buyouts, and when this occurs, you need an experienced entrepreneurial law attorney who can help you through the process. At Tressler & Associates, we can help you through some of the most challenging aspects of running a business, including partner disputes and forced buyouts.
When you’re arguing with a partner and know that there is no mending this relationship or seeing eye to eye with them, you might be wondering how you can remove them. In many cases, your partner might not be willing to leave the company voluntarily. When this happens, a forced buyout may be the best solution. Forcing out a minority shareholder is possible, but it can be complicated, and how a partner can be forced out can vary from company to company.
Many businesses may have provisions in their shareholder’s agreement or other contracts that state how transitions like this are to be handled. These are created in advance to help ensure that there is a process in place when one partner needs to be removed for various reasons. As all shareholders have already signed the agreement, buying out a partner when needed can be a smoother process. A well-drafted shareholders agreement makes it clear how one partner’s shares are transferred and helps ensure that their shares are bought for a fair value.
Even without a shareholder’s agreement that states how partners can be bought out, forced buyouts are still possible. However, forcing out a partner when there are no guidelines in place within the business can be much more complicated. Whenever you have serious disputes with a partner and are concerned about how you’ll manage to run the business with them involved, you need an entrepreneurial law attorney. This is a complicated situation to be in, and Tressler & Associates can help ensure everything is handled properly.
When your business is just starting out, you might never expect to experience any issues, especially with your trusted business partners. However, complications are bound to happen at some point, so you want to ensure you’re prepared for anything by having an entrepreneurial law attorney who can help you through any complicated legal matters. At Tressler & Associates, we know how important your business’s success is, and will work hard to protect it.
You don’t want to put your business at risk by not having the legal aspects of running a business handled carefully. Contact our Tennessee entrepreneurial law attorneys today to get the help your business needs.
If you are in need of legal services, our team of experienced attorneys is here to help! If you need a lawyer now or are just in need of general counsel, we are happy to discuss your needs with you.