At Bryant Taylor Law, we know how fulfilling it can be to start and run a business with a partner you know and trust. Building something with an impact on people’s lives is the dream for Americans everywhere, but sometimes dreams and goals change and partners go their separate ways.
Putting your business’ needs and long-term goals first might mean changing the structure at the top. Employees change all the time, and partners can often be no different as your vision for the future changes. Businesses of all sizes can go through ownership changes without sacrificing progress or credibility. Businesses get divorced, too.
So, what are some signs you should consider buying out a business partner?
They’re getting in the way of progress
Some businesses get to a certain point and stay there, but most businesses have set goals for growth over time. If you find yourself looking at the state of your business and realize things aren’t progressing as you hoped, it might be time to make a change at the top.
This is especially true when you are dealing with a 50-50 partnership. Unless otherwise agreed to, you will likely both need to approve any changes to the business. If you find yourself and your business partner frequently disagreeing on the direction of your business and getting nowhere because of it, you might want to take more control.
They’re no longer involved
Ultimately, not all business partners have to be involved in the day-to-day activities. Some partners provide financial support but allow others to do the work. That’s okay, but if you’re looking for a more active partner without sacrificing your own stake in the company, a buyout could be the first step to finding a new partner.
A buyout can be expensive, but you will have the opportunity to recoup some of that after you land a more active partner. The change will have a high cost initially, but you may see it pay off when you have to take on fewer tasks once a new partner is on board and handles more of the workload.
Clients or employees frequently complain about them
Owning a business can sometimes feel like a thankless venture. It takes a lot of hard work and you probably won’t be able to satisfy everyone. However, creating an environment that feels safe and effective for employees while serving clients’ needs is the smoothest path to success.
If you’re hearing a lot of complaints from clients and/or employees about your partner, this could be an urgent sign that it’s time to move on (especially if you’ve already talked about it with them and the situation hasn’t improved). Your business’ reputation could be at risk if a partner isn’t holding themselves to a proper moral standard.
You’ve exhausted all other options
A buyout shouldn’t be the first option to resolve disputes, but it also doesn’t have to be a bad ending. Businesses and people change, and it’s important to let people move on when the time comes. If you and your business partner have tried finding alternative ways to move forward but nothing seems to be working, it’s time to consider a business divorce.
And when a business divorce is inevitable you want to make sure everything is done correctly so you don’t end up committing the most common legal mistakes business owners make when they try to part ways without the assistance of an experienced business lawyer.
At Bryant Taylor Law, we know the ins and outs of starting, running, and changing businesses in Florida. If you own a business in Florida and are considering a buyout or change in ownership, contact us today! Let our business lawyers help you navigate the change and get your business where you want it to be.
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