Atlanta Corporate Separation Lawyer Dissolves Your Business Partnership
Preserving value while severing ties among co-owners
A frequent scenario among entrepreneurs involves a business at the crossroads, with the partners who built it at crossed purposes. If you and your partner(s) have irreconcilable differences about the strategic vision for your company, it may be time to file for corporate separation. This process differs from a business dissolution, because the company continues to operate even after key players negotiate their exits. Spizzirri Law Offices Company Limited facilitates corporate separation for small to medium-sized companies. Drawing on 25 years of corporate law experience, I can dissolve partnerships on terms that maintain the value of your enterprise.
Getting past the emotions in a corporate separation
The first step in a business separation — deciding which partner or group of partners stays and which goes — can be a difficult and contentious process. Partners are often more than financially invested in the company they built. As with a regular divorce, a period of “marital counseling” may be in order. But if the partnership simply cannot be saved, the partners must move on.
Mediation is often a helpful process for exploring the various possibilities open to the partners. A skilled mediator can help business partners identify realistic goals for the company’s future and for their own futures. Often, mediation can help partners realize that their goals for the future are really at odds with the company’s and that taking the company where they want it to go is not the best way to enhance the value of this asset. When that realization occurs, all sides know who the exiting party should be, and the next task, arranging a fair buyout, comes to the fore.
Negotiating the owner’s exit in a corporate separation
When negotiating an exit in a corporate separation, parties must come to an agreement on the value of the exiting partner’s ownership and adopt a strategy for paying fair compensation. Often, the remaining partners do not have enough cash on hand to pay the exiting partner, or they are simply not interested in paying out of pocket for a buyout. In such cases, the company can structure a leveraged buyout, using their own shares as collateral to take out a loan that pays the exiting partner.
For larger companies, a buyout becomes more complex because it requires the participation and approval of a greater number of shareholders. No matter what end of the process you’re on, it’s imperative that you have reliable corporate counsel negotiating to uphold your interests. As a corporate lawyer in Atlanta, I search for creative ways to reach corporate divorce settlements, because the alternative, a shareholder lawsuit, is potentially very damaging to the company.
Drafting your corporate prenuptial agreement
Many companies avoid the prospect of a messy corporate separation by drafting a clause in their partnership agreement that controls how to handle a partner’s exit. These buy-sell agreements operate as corporate prenups, saving companies the time, stress, and expense of litigating a partner’s exit.
Let a proactive business attorney counsel you on corporate separation
When it is time to dissolve your partnership but not your company, Spizzirri Law Offices Company Limited can help. Drawing on 25 years of business law experience, we help companies reach settlements and finance buyouts without sacrificing value. To schedule a consultation, call 404-458-8311 or contact our Atlanta office online.