Resolving Shareholder Conflict After Hostile Takeover Attempt

Our client found himself at the center of a shareholder conflict, which escalated into a hostile takeover by one of the shareholders.

The situation was problematic and acute to the extent that the founder was on the verge of losing control over his production facilities and assets: upon arriving at the production, he found that the equipment and supplies had been removed, and the partner, with whom there had been a prolonged conflict, was unresponsive.

In such moments, it can be difficult to take control, define a basic set of actions, and execute them without becoming emotionally involved. Meanwhile, mistakes multiply, and risks increase exponentially. The solution, as trite as it may sound, involves separating emotions and acting according to a plan: determining where the highest risks are, what is protected and how, what lies in the grey area of agreements, and how to make a preemptive move.

At that moment, Business Relationships Lab acted as a pragmatic helper. This allowed us to buy time in the first step: to document the situation and develop a tactic for quick actions. In the next step, it was possible to move to active actions to protect our interests and save the business.

Business Relationships Lab acted as a consultant and assistant - we worked out the negotiation position, helped organize the interaction process, and assisted in activities to save the business.

The founder was able to defend his business and regain control, and in the future, to rebuild the key team and grow significantly. But at the moment, it was a difficult and painful time for our client: he really had to fight for the business, the property, the employees, and the clients. The complete process of regaining control took almost two years.

In such situations, there are no painless solutions or simple actions. Once a real conflict flares up, it's practically impossible to resolve it without casualties, and resolving the conflict quickly usually doesn’t happen either.