How (and Why) to Amicably End a Business Partnership
Jun 29 2017
Just like almost every other relationship, the decision to end a business partnership can be a devastating situation for all parties involved. After you’ve identified that the best course of action is in fact an amicable split, there are certain procedures you need to consider before, well, breaking up.
Here are some tips on how to dissolve a business partnership, while still maintaining a professional relationship that could still help you and your business succeed.
Consult Your Contracts
Assuming you and your business partners had the foresight to do this, reviewing any partnership agreements you’ve made is the first step toward ensuring everyone involved in the split gets what they’re both valued for and entitled to receive. Although it’s impossible for even the best-made agreements to cover every possible scenario, it can still give you potential insights on how to start the conversation.
More Concessions, Fewer Demands
Unless it’s a situation where you and your partners refuse to budge on any agreements, it’s better to be as gracious as you can, while still holding onto the slice of the pie you deserve. Essentially, pick your battles and know that even if you couldn’t walk away with everything you wanted, you’ll live to fight another day.
Hire an Attorney
This should go without saying, but when dealing with any kind of contractual agreements, it’s best to have someone who can represent your best interests, while keeping the process as streamlined and stress free as possible.
Plan an Exit Interview
Constructive criticism is a great way to get a gauge of how you’ve operated as both a professional and a partner. Granted, criticism is not the first thing people want to hear while in the midst of dissolving a partnership, but a little humility will certainly go a long way towards making yourself a stronger associate in your next business partnership.