Background
Two long-standing business partners, who had worked together successfully for many years within Company A, decided to deepen their collaboration by forming a new venture, Company B. They approached us for mediation support to create a reference framework for their partnership, to ensure Company B would be run smoothly, with clearly defined roles, responsibilities, and levels of accountability.
Initial Approach
Our initial strategy was methodical:
- We first met with both partners together to gain a broad understanding of their expectations from the new partnership.
- We then held individual sessions with each partner separately. This allowed them to speak openly and honestly about their views, concerns, and hopes for working together in Company B.
- After gathering information from both sides, we summarised the findings and brought them back together for a joint discussion.
Key Developments
During the course of these meetings, it became clear that despite their long working history, the partners were not as compatible for a formal partnership as originally assumed. Historic loyalty and habit, rather than a clear alignment of business goals and working styles, had led them to consider forming Company B together.
What started as a straightforward framework development project naturally evolved into a full mediation process. We extended the mediation to cover not just Company B but also their working dynamics within Company A, including their interactions with third parties and other stakeholders.
Outcome
Through open dialogue and professional mediation:
- Both parties recognised that pursuing a partnership model in Company B was not in their best interests.
- Instead of forcing a formal partnership, they amicably decided to part ways regarding Company B.
- This decision prevented future financial losses, avoided the risk of serious partnership breakdowns, and saved an estimated tens of thousands of pounds in potential legal and operational disputes.
Conclusion
This case highlights the immense value of mediation at the earliest stage of a business relationship. By creating a safe space for honest conversations and structured analysis, we helped the partners make a well-informed decision that protected their interests, preserved their professional respect for each other, and safeguarded both businesses from future complications.
Without this intervention, they might have proceeded with an incompatible partnership, only to face damaging consequences years later. Instead, through our process, they avoided long-term disputes and unnecessary financial and emotional costs.