Breaking a business partnership is hard as it involves additional complications that are financial. However, if you are looking for a few tips to salvage your relationship and still save money, here are a few pointers that will help you end a partnership smoothly.
Start off by looking at your partnership agreement and how it is worded. You may also want to get some help from an attorney who will look into the specifics. In some cases, you may be moving out of the partnership, but your partner(s) may continue to operate the business.
Pierre Zarokian, CEO of SEO company Submit Express, recommends “If you don’t have a partnership agreement, closing your business may take a lot longer and be more costly. In these instances, partners will have to work together to find common ground to dissolve the partnership. I good option in these instances is to hire a neutral mediator who will help all parties to reach an agreement.
The type of partnership will also play a role in how fast and how expensive ending a partnership will be. If your partner has a majority controlling share, the partnership may fail if the other partners cannot do a buyout. However, if only one partner remains in the business, an attorney will have to change the legal status of the business.
“Another good option could be to sell the partnership,” says Pierre Zarokian. However, the partner leaving will have to be bought out before the sale.