- Business Break-Ups - Important Tips to Prepare Before the Problem Arises
- November 25, 2013 | Authors: Donald F. Kochersberger; Timothy R. Mortimer
- Law Firm: Business Law Southwest LLC - Albuquerque Office
New business partners don’t typically think about anything going wrong down the road, however, business and personal disputes are often irreconcilable, and sometimes partners ultimately decide to break up the business. Ideally, businesses and business partners take the necessary steps to plan ahead for dissolution and alleviate much of the stress associated with typical business break-ups.
Individuals entering into business relationships (either as a partnership, corporation or a Limited Liability Corporation) often do not understand the value or significance of having a plan in place should the business dissolve due to one partner leaving, a buy-out, merger, death or disability. BLSW has developed the Business Break-Ups program to help businesses establish planning from the onset to reduce disputes in the event of a dissolution.
Included in the Business Break-Ups planning are the following ways businesses prepare before problems arise:
- Establish a formal agreement for the operation of the business
- Have the documents drafted, or at least reviewed, by a professional
- Have a buy-sell agreement that establishes a methodology for valuation of the business
- Meet regularly (at least yearly) with your business attorney
- Have regular owner meetings
While we assist many clients in navigating and litigating through a dissolution, we prefer to work with clients to educate them and prepare them for the possibility of dissolution when they are starting the business. We have decades of combined experience in business transactions and business litigation. These are complex practice areas and having an attorney who knows New Mexico business law is invaluable when either establishing or dissolving businesses.