In a Business Divorce, Knowing What to Do Is the First Step
February 19, 2020
Neil Sadaka said it best: “Breaking up is hard to do.”
It’s as true in love as it is in business, and when confronted with a business divorce, you have to be prepared, according to these Long Island experts.
You need to go into the process asking questions. “Step one for a business owner facing a partnership breakup is to identify options and strategic goals,” said Peter Mahler, a partner at Farrell Fritz, who concentrates on business divorce cases involving dissolution and other disputes among co-owners of closely held business entities.
”Do I want to buy out my partner or be bought out? Do I want to sell the business at the highest possible price to an outside buyer? Is it a multi-property realty company whose assets can be divided in a tax-efficient manner? If I’m a majority owner who wants to maintain control, can I “cash out” my partner by merger? If I’m a minority owner who wants out, can I get fair value for my equity stake?”
Does my partnership agreement help or hinder my goals?” Mahler said. “Once the business owner determines where he or she wants to end up, the right professionals can assist in getting there.”
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