Owning an Illinois business with a partner can be one of the most rewarding experiences. Unfortunately, sometimes, an internal dispute might arise. There are a few ways you can resolve things.
Partnership agreement
Although this is only an option for settling partnership disputes before they happen, a partnership agreement can keep things on an even keel. It’s a legal document that should be created while you and your business partner are still on the same page. The agreement can include terms by which all parties abide in the event of a future dispute.
Mediation
Mediation is a good way to resolve a partnership dispute as all parties are able to rationally discuss all the issues of concern. A mediator listens to everyone’s side of the story and remains neutral but coaches the partners so that they can see one another’s point of view and reach a satisfactory conclusion. Mediation is the best option for settling a dispute outside of a courtroom. It’s faster, cheaper and often helps people settle their disputes so that no hard feelings linger.
Buyout
Sometimes, a buyout is necessary when there’s a partnership dispute. This option is best when there are multiple partners who wish to continue the business while one can’t reach an agreement with the others. In a buyout situation, the value of the business must be determined so that the partner who will leave receives their fair monetary share.
Sell out to new owners
If a solution cannot be reached, the partners might choose to sell out to new owners. Often, new owners are people already working within the business.
Litigation
Litigation might be necessary if there are serious disputes among the partners. Usually, this is the course of action to take when one partner has committed some sort of misconduct such as fraud. Sometimes, litigation is used if mediation is unsuccessful.