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FAMILY BUSINESS MEDIATION

Mediate, don't litigate

"Two thirds of family businesses have no process in place to deal with Conflict"
BDO Simpson Xavier

 

Taking legal action to resolve a business dispute should only be a last resort, especially when family members are involved. That’s because nobody wins when it goes to court. The legal system can prove costly and adversarial.

 

Furthermore, family businesses have their own set of unique circumstances. The involvement of parents and children can make ownership and transfer issues more difficult. It may be business but everything gets personal, old tensions re-surface and people say things they later regret.    


Process

The typical Family Business Mediation process will involve a number of steps:

  1. Pre-mediation meetings, telephone conversations and correspondence with each party. This enables the mediator to obtain a history of the conflict to date and gain an understanding of the perspective of each party. The Mediator will also explain the process and ascertain the willingness and suitability of the parties to mediate

  2. A signed agreement to mediate

  3. A joint mediation meeting with all parties. Where this is not immediately possible or where the situation dictates, shuttle meetings may also be conducted

  4. The mediation is conducted in a manner which provides ample time and opportunity for the parties to reach agreement

  5. A written agreement is drawn up and signed by all parties. It is estimated that 80% of all mediations end in agreement. Such agreement may include a monitoring process within which time is given to rebuild and restore relationships