Disputes Between Business Owners and Investors

Disputes Between Business Owners and Investors are Costly & Distracting

Disputes between business owners and investors distract the focus of business and reduce profitability.  Business disputes distract the owners and managers of the business from the primary focus of the company of itself.  Today’s business environment is more challenging, competitive, and demanding that at any time in history.  The profitable operation and growth of a company require the entire focus and attention of its owners and managers.  When disputes arise between shareholders or members the company can lose focus and momentum, resulting in reduced profits and in some cases business failure.

The Watkins Firm has served San Diego corporations, LLCs and small businesses for decades.  We understand the pressures of running a business, and the issues that arise in the relationships or local business professionals.  Disputes between business owners and investors usually boil down to money.  Many business people are surprised to learn that the likelihood of disputes actually increases as a business thrives and the money rolls in.  How do you reduce the likelihood that a dispute between the owner(s) of a business and it’s investors or shareholders will distract the focus of business, and prevent expensive business litigation?

The key is the development and continuous update of sound operating agreements and shareholders agreements, as well as corporate bylaws.  These critical business documents should be well crafted to anticipate every possible business or personal challenge, while providing specific strategies and contingency plans for handling them should they arise.  These agreements specify the roles and responsibilities of each member or investor, as well as how income and profit will be handled at each point of your company’s life.

Disputes between business owners and investors can be costly and time consuming.  We invite you to review the strong recommendations of our clients and the legal industry and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation  We work with clients to create, update, or amend shareholder agreements and operating agreements to ensure smooth business operations, and to reduce the opportunity for and likelihood of expensive and distracting business litigation.

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