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Resolving A Partnership Dispute Through A Buyout


A dispute between business partners has the potential to cause serious damage to a company. When partnership disputes drag on, there are often no winners. If you are locked in a partnership dispute, it is generally best to look for a solution that will work for all parties. The best path forward may be negotiating a buyout agreement. In this blog post, our West Palm Beach partnership dispute lawyers discuss some of the most important things to understand about partnership disputes and buyouts.

What is a Buyout of a Business Partnership? 

As simply defined by Investopedia, a buyout is the acquisition of the controlling interest in a company by one party from another party. In other words, a buyout occurs when the purchaser buys enough of the company to obtain more than 50 percent ownership. By doing so, they will then be in a position to control the future of the business partnership.

Buyouts May Be the Best Solution for a Deadlock Dispute 

Partnership disputes are highly fact specific. How exactly these disputes should be resolved depends on many different factors, including the ownership stake of each partner and the nature of the working relationship between business partners. If you are involved in a deadlock partnership dispute or an otherwise difficult partnership dispute, a buyout may be the right path forward.

A buyout allows one party to obtain the controlling shares from the other party. Most often, this means that one (or more) partners is agreeing to leave business and give up their shares in exchange for a payment. Unless there is a provision in the partnership agreement that requires a buyout in certain circumstances, a buyout must be negotiated.

Four Tips for Negotiating a Buyout in a Partnership Dispute 

Negotiating a buyout in a partnership dispute can be complicated. There are many different issues that need to be considered. Here are four tips to keep in mind if you are preparing to negotiate a partnership buyout in South Florida:

  1. Know Your Rights and Responsibilities: Your rights and responsibilities arise primarily from your partnership agreement. Make sure you understand the implications.
  2. Understand the Value of the Partnership: You cannot effectively negotiate a buyout agreement unless you understand the true value of the business partnership.
  3. Be Willing to Get Creative: Even in a fierce dispute, business partners share many mutual interests. Remember, all partners can lose in a protracted dispute. Do not let a dispute damage the partnership.
  4. Consult With an Attorney: There are many legal considerations involved in working towards a buyout agreement. An experienced business partnership lawyer will protect your rights and interests. 

Call Our Miami Partnership Dispute Lawyers for Immediate Help

At Pike & Lustig, LLP, our South Florida partnership dispute attorneys advocate for the rights and interests of our clients. If you have any questions about partnership buyouts, we can help. Contact us now for a strictly private case evaluation. We provide partnership representation throughout South Florida, including in Miami, Hollywood, Fort Lauderdale, Boca Raton, and West Palm Beach.



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