Business partners are bound to run into disputes at some point. They do need to try to work together and get along, but it is not always going to go seamlessly. They may get into disputes over how money is being used, what roles they have in the business, who gets to make certain decisions or how they should be paid – just to name a few common examples.
When these disputes happen, business partners will sometimes turn to litigation. However this can be very detrimental to the business and the partners’ relationship, and so mediation may be a better option for the company. In fact, it may help the company continue after the issues are resolved, whereas litigation may lead to the end of the partnership.
What is the benefit of mediation?
With litigation, the goal is often to win the case. One side is trying to win against the other. This means that both people feel severely at odds and are unlikely to continue working together after the case has been settled. No matter who wins, there can be a long-term falling out.
The goal of mediation is to cooperate and find a solution that works for everyone. The mediator isn’t on anyone’s side and isn’t trying to win. They are just helping the business partners look into the different legal solutions they have and explore their options. Ideally, they can find something that works for both partners, they can mend fences and the business can continue.
This is only one of the benefits of mediation. If you’re facing a business dispute, this helps to show why it is important to consider all of the options that you have.