Family disputes can be difficult to get through, so imagine how complicated it can be to settle a dispute involving a family business. One area that is typically a sticking point among small family businesses is the decision on who will be the successor when the owner steps aside or dies. To resolve some of these disputes in a way that is amicable, one step you can take is to hire a professional mediation company. Below, you can explore the benefits of legal mediation, what you should know about the process, and how to hire a professional.
The Benefits of Small Business Legal Mediation
If you are unsure about the effect of hiring a business mediator, perhaps some of the following points will be helpful. One of the main benefits of legal mediation is that your situation will be resolved much quicker. For instance, legal mediation gets a settlement in an average of approximately 7 months, while a court judgment would take more than 16 months. Hiring one of these companies also allows you to keep these matters out of the public eye, whereas a court procedure would be open to the public. Further, mediation is useful in communicating concerns so that both parties can come up with an agreement that makes sense.
The Mediation Process
It is important to understand as much as you can about mediation prior to receiving the service. If you are attempting to decide on the order of succession in your family business, a mediator will typically sit down all official staff and management and hash out what they hope to see in their next owner. The mediators will also go over any business plans, charters, or other official documents which might have a declarative direction on how this must be handled. After taking in information from all parties, the mediator will help to put together several drafts of potential settlements, communicating needs back and forth, until an agreement is reached.
The Hiring of Legal Mediation
In order to get the help of professional business mediators, you must take your time and hire the most credible and helpful legal mediators. Put together a list of what you hope to accomplish from mediation and make sure that you hire a company with these specialties. You should also reach out to other family owned small businesses that have used these companies so get a good referral. Be sure you are able to pay for their services, as legal mediation can cost between $200 and $600 per hour, depending on the level of mediation required.
Share28 November 2016
Starting a home business is a great idea, but never think that it should not be incorporated. As I learned the hard way, working with an attorney to set up the business properly offers a lot of protections. I figured no one would want to bother with me and my little operation. As things began to take off, a copycat business sporting the same name and a slightly altered logo popped up on the scene. The copycat was able to nab some of my hard-earned business and left me out in the cold. It took help from a business attorney to protect my brand and get things back on track. If you think it's okay to wait until later to legally structure your operation, think again. Let me tell you more about what I should have done early on and why. Listen closely and I'll save you some grief.