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Category Archives: Deadlock

When Things Fall Apart: Business Partnership, Disagreement, and Dissolution (Part II)

August 30, 2016

In Cline v. Grelock,[1] the business partners were two lifetime friends who started a towing business called American Asset Recovery, LLC (“AAR”) d/b/a Hound Dog Recovery.  To get the business rolling, Grelock and Cline personally guaranteed a bank loan for AAR to purchase a motor vehicle for the business.  Unfortunately, the business was not very successful—it had substantial debts and did not operate at a profit.  The relationship between the two co-owners also deteriorated to the point where continuing the business was not practicable. … Read the rest

When Things Fall Apart: Business Partnership, Disagreement, and Dissolution (Part I)

August 23, 2016

Here at The R. Shawn McBride Law Firm, PLLC, we write and speak frequently on business partnership, especially the 4 Ds (death, disability, divorce, and disagreement), which can have a major impact on businesses.  In our previous blog series on business divorce, for example, we talked about why business partners may disagree, describing some instances of conflict that business owners may encounter, and what they can do to protect themselves and the value of their business in the event of a business break-up and the attendant business disruption. … Read the rest

Business Divorces – Post 9

April 23, 2015

Post 9

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation.  Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

Business Divorces – Post 8

April 21, 2015

Post 8

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation.  Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

Business Divorces – Post 7

April 16, 2015

Post 7

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation.  Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

Business Divorces – Post 6

April 14, 2015

Post 6

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation.  Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

Business Divorces – Post 5

April 9, 2015

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation. Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

Business Divorces – Post 4

April 7, 2015

This series focuses on “business divorce,” the break-up of a business between business owners due to disagreement or other circumstances.  A business break-up leads to either one owner continuing the business without the other owner, the forced sale of the business to a third party, or a total dissolution or winding up of the affairs of the business.  Because the situation can be contentious, it may lead to unnecessary litigation.  Shutting a business is often not a viable option, so it may be better for one member to either buy out the other member or sell its stake to the other member. … Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.