Debra Synovec & Associates

PARTNERSHIP MEDIATION

PURPOSE

Partnership  Mediation offers individuals who are planning to form a partnership opportunity to prevent future issues from arising during the operation of the partnership, to handle issues that arise during the operations of the partnership or to resolve issues if the partnership is dissolving.    When individuals decide to form a partnership they are often wearing rose-colored glasses and are not considering the legal and financial consequences of their decision to form a business entity.  Once the partnership is operating situations may arise that are unanticipated and cause friction and unexpected consequences. 

Mediation helps individuals form a solid partnership agreement that helps prevent conflict from arising in the future, which may be costly and even cause the best of operations to become unproductive.  Partnerships break up frequently because of the diverse and unspoken expectations regarding each partner’s obligations, and compensation.  The break down of a partnership of a partnership can be devaatating for the individuals involved.  Partners frequently have long-term personal relationships with each other, including economic as well as non-economic ties. 

Mediation helps partners prevent conflict by developing a plan for the partnership, handling disputes that arise during operations or dissolving the partnership cooperatively in the event the partners choose to dissolve the relationship. 

PROCESS

Partnership mediation is a process in which the mediator facilitates discussions between partners to help them resolves issues when establishing the partnership, operating the partnership or dissolving the partnership.  

Mediation is used when:

Establishing Partnership: Mediation helps the partners to establish their roles and responsibilities so that they can be proactive rather than reactive.   The mediator helps the partners have open communication, create a problem solving system, identify and prevent risks, and create realistic agreements.

Operating Partnership: Mediation helps the partners solve problems that arise between the partners while the partnership is operating. 

Dissolving Partnership: Mediation promotes a cooperative, respective forum in order to facilitate a civilized dissolution, reduces acrimony and keeps the partners out of litigation. The mediator can help partners have an open dialogue in order to express their needs, explore various options and create a fair and realistic agreement.  Mediation helps partners move forward without engaging in an acrimonious process so that they are able to reach a mutually beneficial plan. 

BENEFITS

• Advance objectives of partnership members
• Promote growth through strategic planning
• Foster respectful, open communication
• Enhance relationships  
• Reduce waste of assets
• Resolve issues confidentially and privately
• Reduce future conflict
• Manage disputes peacefully