HOUSTON – Ashish Mahendru, founder of litigation boutique Mahendru P.C., was interviewed by the Houston Chronicle for his expertise involving the dissolution of business partnerships.
In the article, “Q&A: Lawyer helps business partners break up,” reporter L.M. Sixel questions Mr. Mahendru about “what happens when the bonds are shattered” in a business partnership.
His advice for those entering a partnership is to negotiate a contract at the outset that envisions the worst. By considering in the beginning how agreements can go bad, businesses actually increase chances that a partnership will survive, he said.
Asked what causes partnership problems in the first place, he responded: “They did not properly and thoughtfully express the expectations of each other when they founded the business. It is imperative not to just talk about the rosy picture but what can go wrong and how the company will address the problems. A company agreement is like a prenuptial agreement.”
Mr. Mahendru explained that what one partner may perceive as theft of funds, trade secrets, or equipment from the business, the other partner may view as simply getting his or her fair share.
“Because the partner who felt they were doing the work but not reaping the rewards is taking matters into their own hands. They convince themselves that their conduct is totally justified… Before they make the decision to charge a personal expense to the company account, they go through mental gymnastics on why it should be a company expense,” Mr. Mahendru told the newspaper. “Once that happens, it becomes a slippery slope.”
Mr. Mahendru said he often hears about business problems when a company is beyond repair, adding that he frequently sees such disputes with partnerships involving medical doctors. “They don’t have the time and don’t have the proper checks and balances in place,” he said. “They are willing to look the other way until they discover how much money was taken from the company. But the human greed factor is across the board.”
Mahendru P.C. is a boutique commercial litigation firm whose attorneys are known for their tenacity, intelligence and experience. Founded in 2001, the firm has a simple philosophy: Your problem is our problem. We adopt it, understand it and solve it. Our objective is to resolve every case in the best, fastest and most cost-efficient manner possible. We never wait for our opponent’s next move, which means we spend a lot of time at the courthouse and are well-known there. To learn more visit https://www.thelitigationgroup.com/.