Business Divorce

Most business partners begin their business relationship with the best of intentions. But what happens when, for one reason or another, that relationship must end? The role of counsel is critical to the successful resolution of partnership disputes. Fox Swibel’s attorneys are trusted counsel experienced in advising clients on all the legal issues at every stage of dissolution and with other disputes among owners of corporations, limited liability companies and partnerships.  

Whether the split is amicable or contentious, and whether the company’s operative documents set forth a separation process or, like in many cases, there is no operating agreement or the operating agreement is silent about how the company is to be wound down or divided, our attorneys understand the importance of working with the other side to use all avenues to resolve internal business disputes short of litigation.

Partnership Dispute Services

Fox Swibel’s attorneys routinely assist clients with evaluating the most effective strategies and approaches to the often very unique aspects of a business divorce depending on the type of business entity involved, the applicable state laws, dissolution statutes and the governing documents, including, for example, certificates of incorporation, bylaws, stockholder agreements, and buy-sell agreements. Our attorneys regularly handle internal business disputes involving:

  • Breaches of fiduciary duty among shareholders, partners and LLC members;
  • Valuation of stock, partnership equity and LLC interests;
  • Governance issues, including conflicts of interest;
  • Advising on key provisions in shareholder, partnership and LLC operating agreements; and
  • Dissolution and winding up of the entity.

Our attorneys also regularly advise partners and companies with respect to strategies meant minimize the risk of future litigation by agreeing in advance on issues such as dissolution upon specified events, breaking deadlocks in management, and covenants not to compete, for example.

Pre-Litigation Resolution

When possible, our attorneys work with our clients to develop an aggressive strategy to obtain a favorable consensual resolution. Our team is experienced in advising clients on solutions that eliminate the business interruption, expense and uncertainty of litigation, while at the same time preparing for the possibility of litigation.

Litigation

Sometimes litigation is the only option. Under those circumstances, Fox Swibel aggressively represents its clients to obtain favorable outcomes. Our attorneys handle all types of disputes including dissenting shareholder matters, oppressed shareholder actions, deadlock actions in 50-50 companies, actions involving LLCs, and disassociation.

Resolution

Fox Swibel’s sophisticated corporate, lending, real estate and tax practices also stand ready to advise clients on structuring and documenting buyouts or other forms of reorganization. Our teams’ ability and experience in providing creative solutions to complex situations separates Fox Swibel from the rest. Examples of Fox Swibel’s work in this area includes:

    • Represented our client in a high stakes business divorce and negotiated a multi-million dollar buy-out of our client’s stake in various real estate holdings and bar and restaurant operations which involved the untangling and sale of interests in more than 30 different legal entities.
    • Represented a majority owner of minority-owned engineering firm with respect to a dispute with his business partner where the company’s operating agreement was silent as to how the parties could separate. The company was facing court-ordered dissolution if the parties could not reach a mutually agreed buyout. After successfully mediating their business divorce, we assisted our client in obtaining an SBA loan to fund the agreed upon buyout and represented the company in closing on the financing.
Our Business Divorce Attorneys
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