Are you in disagreement with existing partners? Are you about to enter a new partnership and want to increase the chances for its success? Partnership mediation is probably the best solution for you.
You already know that just before you hit the road, you should have a partnership agreement or a founders’ agreement to regulate the partners’ conduct should the partnership fall apart. But have you considered how the partnership should be managed in order for it to thrive and succeed, for the benefit of all parties involved? Partnership agreements only dealing with what will happen should the company fall apart neglect the most important thing – the way to make the company thrive and realize its goals and objectives. Mediation in a partnership agreement allows you to define what will happen should the partnership end but, equally important, to pre-define the way the partnership should be managed in order to generate success and minimize the chances for failure.
During the partnership mediation process, we help the parties define personal and common objective related to the business and their personal aspects that can influence their business conduct. Among other things, the following questions are discussed:
What is the division of responsibilities in the business; how will profits be distributed; how will expenses be distributed; what happens if there is a fixed deficit; what will the mechanism for decision making in the business be; what does one expect from the other partners; what are the expectations one has from him or herself in the business; how should unexpected disputes be solved; and other questions, answering which will help in designing a clear roadmap to a successful and fertile partnership.
The Advantages of Partnership Mediation
Confidentiality – all that is being discussed and agreed upon during the mediation process is confidential. This allows you to safely discuss all aspects that are important for your business, which you fear may be leaked to your competitors.
Availability – Partnership mediation is conducted at your convenient times.
Creativity – Partnership mediation allows for complete freedom to ensure that the business you are founding will make all your objectives come true.
A partnership agreement which is also a roadmap – the agreement you sign at the end of the partnership mediation process will allow you to know in advance what your partnership would look like and what you could expect at any stage of the establishment process and in the following stages.
A guarantee in case the partnership dissolves – Partnership mediation guarantees a clear understanding of each party’s rights and obligations in case the business fails.
Minimizing failures – the agreement you get at the end of the mediation process will minimize the chance of discovering different attitudes and ways of conducting business after the business has already been established and, thus, significant difference of opinions that will make the partnership fall apart early.
How is a Partnership Mediation Managed?
Partnership mediation process starts with defining the parties’ goals and objectives with all that regards the company. In this part of the mediation, we ask each party for their goals and expectations, and help generating clear objectives that are agreed on all partners.
The next is to define the roles and responsibilities for each partner. During this stage, each party defines, with the other partners, their part in managing the business. Once this stage is completed, the work methods required to correctly manage the partnership are defined, as are the expected and desired goals and benchmarks. In this part of the mediation process it is possible, and often desired, to have a business or organizational consultant joining the process in order to help focusing the partners and generate the business plan with them.
After having a clear image of how the partnership is to be managed, the partners can discuss more clearly and with greater confidence what should happen in case the partnership ends. As part of the discussion, the mechanisms for dissolving the partnership (if necessary) are determined, and the terms and conditions for dividing the profits, the assets and the debts of the company are defined.
The work method we apply in partnership mediations allows the partners to get on the new path with greater confidence and a significantly larger chance the partnership will make the partners’ dreams come true.
Q&A about Partnership Mediation
Q: Who is partnership mediation for?
A: Partnership mediation is designated for people who are interested in starting a new partnership or ,are part of an existing one, and want to prepare a detailed agreement that regulates the management of the said partnership to ensure its success, and to determine what happens in case the partnership terminates.
Q: How much does partnership mediation cost?
A: The payment is per hour, and it is in the range of 450 NIS and 850 NIS for party for hour (depending on the mediator).
Q: Is a contract achieved in partnership mediation legally binding?
A: Certainly. An agreement achieved in mediation, approved and signed by all parties, is legally binding. If necessary, it can be submitted to court in order to make it a verdict.
Q: How long does it take to reach an agreement in partnership mediation?
A: The length of the process depends on the parties’ needs. An average process lasts for 2-3 sessions.
Q: Where does the mediation take place?
A: The mediation can be held in any of our offices. Everything will be scheduled according to your convenience and the availability of your favorite mediator.
Q: Who are the mediators in Nishri Mediator offices?
A: Our mediators are senior and experienced mediators, who underwent the best required trainings and accumulated great experience during the years in various mediations.