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Breaking Up is Hard to do

by | Oct 7, 2023 | Firm News |

When business owners are unable to get along, the best course of action is likely to be an agreement which creates an orderly separation of their association. This may take the form of a buyout, a sale of the company, or some other agreement where the business moves forward but the ownership dispute is resolved. But what is the path forward when business owners are hopelessly deadlocked and they are unable to resolve their dispute without court intervention? In that case, Pennsylvania statutes provide for court ordered dissolution. This is a drastic remedy, but it is appropriate where the owners are unable to work things out for themselves. In a court ordered dissolution, the business assets are likely to be sold off at auction, and the business itself is shuttered at the conclusion of this process. A court ordered dissolution is rarely the best approach for maximizing ownership’s value in the business, but nevertheless, this is the remedy a court will order where the owners are hopelessly deadlocked.

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