When you first started your business partnership, you may have been very enthusiastic about it. Your partner seemed to have all the right experience or personal connections to help your business thrive. Now, after you have spent some time working together, your enthusiasm has dulled.
Maybe they made promises that they never followed through on, or perhaps you have reason to suspect them of embezzling from your company. How do you potentially end a business partnership that has not gone the way you had hoped?
1. Dissolve the business
The simplest means of ending a business partnership when you no longer want to cooperate with the other party is to dissolve the partnership entirely. This means closing your company. For some people, this will not be the best solution because they want to continue running their businesses. They may have to choose one of the two options below.
2. Buy out your partner
You may have already included terms in your initial partnership agreement that will allow one of you to buy out the other if you no longer agree about the future operations of your company. This can be a valid option for those who want to end the partnership for personal reasons, not misconduct.
3. Initiate a civil lawsuit
There may be scenarios in which your partner does not agree to exit the company in a timely manner as they should or where they have cost the organization money through incompetence or misconduct. Pursuing a civil claim could lead to financial reimbursement and the end of your partnership.
Recognizing when you may need to initiate business litigation can help those in a struggling partnership.