Breaking up corporately doesn’t have to be hard to do!
Has your business experienced rapid changes that have altered existing partnerships and ownership structures? The corporate world moves fast and in the blink of an eye, relationships can often shift in response. While few business owners want to think about what might happen if their current partnership structure is no longer feasible, having a plan in place is essential for protecting your business. Paperclip Law is proud to partner with our clients throughout the Greater Vancouver Region to provide comprehensive corporate legal services, including handling the dissolution and reworking of partnership agreements and more. If you’re in the midst of a major corporate restructure, below are a few key aspects in mind to help keep the road ahead smooth.
Why Do “Breakups” Happen?
While the dissolution of an existing partnership often has negative connotations, this may or may not in fact be the case. There are plenty of reasons a leadership team may choose to restructure, both from a professional and personal approach. From co-founders splitting off to form different ventures to buyouts and more, there are many different motivating factors that may lead to companies altering their current standing. No matter the cause behind your restructure, it’s important to have a game plan in place to help guide the process and ensure the transition is as clean as possible.
Plan From The Start
Very few entrepreneurs enter into business with the intention to split with their business partners or making serious changes on sudden notice. That’s why it’s absolutely crucial that you protect your future self, as well as your venture, by doing your due diligence from day one. Make sure you have clear documentation for everything from partnership (or shareholder) agreements through to detailed meeting minutes and everything in between. You’ll also want to be clear on who maintains ownership of copyrights and all relevant IP.
Simply put, the more data you have documented, the easier it will be to make an informed decision down the line.
Prepare For Emotional Reactions
Even under the best of conditions, corporate breakups can take a toll on our mental health. This, in turn, can pull difficult emotions that can further complicate the process and lead to less than amicable terms of the settlement. Try to avoid emotional entanglement as much as possible, and remember to be patient and reasonable all the way through. It has to get messy before it gets all cleaned up. By doing so, you’ll greatly reduce your own stress, and likely help to expedite things far more than by taking an antagonistic stance.
Make Sure You’ve Got Someone Watching Your Back
Partnering with an experienced team like Paperclip Law makes it easy to navigate the difficult waters of corporate legality. As entrepreneurs ourselves, we understand just how important it is to have strong representation and counsel you can trust, no matter what the case may be. From hiring your first employee to applying for patents, venture capital and more, Paperclip Law is here to help! Learn more about our corporate legal services in Vancouver by contacting our team today!