Business dissolution mediation is defined as a structured negotiation in which a neutral third-party mediator facilitates discussions between business owners, partners, shareholders, other interested parties and legal counsel to reach a mutually agreeable resolution to a dispute, which is called a settlement agreement. Unlike litigation, mediation fosters open communication and collaboration, helping parties find solutions that address legal, financial and emotional concerns. It also maximizes the value of the business because parties who know the business best – unlike, say, a court-appointed receiver – control the outcome of the negotiation process and the dissolution of the business, and their settlement agreement is enforceable in court, acting as a contract.

Our panel of retired judges and seasoned attorneys have settled numerous business dissolution disputes throughout the multiple decades that ADR Systems has been in business. These have included:

• A dispute involving claims that the defendant breached their fiduciary duty and usurped corporate opportunities from a jointly owned business to further a similar business owned and operated by the defendant

• A dispute resulting from the merger of law firms that involved negotiations among firm shareholders to decouple personnel, operations, assets and liabilities from offices

• A dispute involving the division of assets and ownership stake of a jointly owned health technology provider

Parties to a business dissolution dispute enjoy various advantages when they mediate it at ADR Systems.

Faster Resolutions: Mediation can resolve disputes in weeks or months rather than years, reducing the time burden on plaintiffs and defendants

Cost Savings: Avoiding lengthy court battles saves money otherwise spent on legal fees, expert witness costs and administrative expenses.

Confidentiality: Unlike public court proceedings, mediation is confidential, protecting reputations and sensitive information.

Reduced Stress: Mediation fosters a collaborative rather than adversarial atmosphere, reducing emotional strain for all involved.

Greater Control: Mediation removes the uncertainty and risk associated with litigation, where outcomes can be all-or-nothing; both parties have a say in the outcome of the case rather than leaving the decision in the hands of a judge or jury.

Preserved Relationships: Open dialogue allows business owners, partners, shareholders and other interested parties to maintain professional, civil relationships when possible.

Experienced Neutrals: ADR Systems’ panel of mediators consists of retired judges and seasoned attorneys with decades of hands-on knowledge of the disputes before them and an ardent passion for resolving them.

Mediation is a practical solution for many business dissolution disputes. It is particularly beneficial when parties seek a resolution that prioritizes confidentiality, expediency and cost-effectiveness.

If you are representing clients involved in a business dissolution dispute and want to pursue mediation as an alternative to litigation, explore our Find A Neutral page to review the bios of mediators with experience mediating business dissolution disputes.

Submit your business dissolution case through our Neutral Availability Form or Contact Form.