Hellmuth & Johnson attorneys Terry Moore and Kylie Kaminski provide guidance on messy business breakups in their article, Corporate divorce: Creating leverage for the victimized shareholder.
It is a common story. Two friends start a business. Over the next 15 years, the business becomes a success, but the partners’ priorities change. One partner wants to grow the business and the other wants to relax and enjoy their success. Pretty soon, they want to split up.
If you think this sounds like a broken marriage, you are right.
Like marriage, business divorce can bring out the nasty side. Most people go into business thinking things will never go sideways. But things do. Planning ahead can save you headaches down the road. As is human nature, the last thing people want to discuss when starting a new business is the possibility of bad acts down the road.
Read the full article here.