We represented one of two co-owners of two affiliated businesses.
The owners had worked together successfully for years. However, the relationship deteriorated and they were unable to cooperate effectively anymore.
Our client wanted each of the partners to move on and engage in business independently. The client was open to a range of options, such as splitting the assets, each taking one business, or simply being bought out.
The other partner would promise to sit down to discuss a solution, but would never actually do so, even after receiving letters from counsel inviting a cooperative resolution.
When the matter could not be resolved amicably, we helped the client warn the partner that a judicially supervised dissolution of the enterprises was becoming inevitable. That approach would force the businesses to go to auction under court supervision, and might even result in appointment of a receiver until the auction concluded.
Although auction probably was not an ideal result, it was a better option than staying in the partnership, which was not acceptable. The goal was to force the other partner to address the disagreement and need to split.
Faced with the prospect of a court-supervised dissolution, the uncooperative partner finally engaged and began to negotiate.
We were able to reach an agreement to separate the two businesses so each client would own one. Perceived differences in value were resolved by transferring assets between the companies before the final division.
Ultimately, our client owned a profitable business he believed in, and was able to secure independence from the unworkable partnership relationship.