From Conflict to Growth: How Strategic Guidance Resolved a Major Business Dispute

In this case study, you’ll discover how BridgePoint Group’s strategic approach to legal, accounting, and corporate advisory services helped resolve a significant business conflict. Our integrated team ensured a smooth transition in ownership, empowering the business for future success and growth.

Context

Our client, one of Australia’s leading companies in the construction industry, faced a critical situation. The business was thriving, but internal conflicts between the owners had escalated. Lacking trust in their current advisors, one owner turned to BridgePoint Group for support.

Early questioning revealed the shareholders’ agreement was never finalised. This situation illustrates that the resolution of a dispute is made harder by the erosion of trust, the absence of clear agreements and productive communication.

Challenge

The primary challenge was resolving the ongoing business conflict and helping our client acquire full control whilst ensuring that commercial damage was contained. Without the proper structures, disputes over invoices and operational agreements became significant hurdles. We needed to resolve these conflicts quickly while ensuring the business continued to operate efficiently.

This case highlights a handful of key reasons that business disputes can and occasionally do arise — poorly considered corporate structures, insufficient planning, incomplete documentation, the absence of appropriate internal controls, the absence of clear reporting and unresolved financial issues often lead to tension.

Read: Why Getting the Corporate Structure Right Can Be a Game Changer for Your Business

What We Did

BridgePoint Group’s legal, accounting, and corporate secretarial teams collaborated to resolve the business conflict and secure a favourable outcome:

• Ownership Structure: We negotiated and advised on the acquisition of 100% of the business for $1. This new structure resolved the ownership dispute and positioned the client for future growth.
• Dispute Resolution: Our team resolved the business conflict over disputed invoices, achieving agreement for settlement on favourable terms.
• Financial Documentation: We collaborated with the client’s finance team to prepare all necessary documentation. This detailed work helped clarify cash flows and secured financial certainty for our client.
• Legal Agreements: Our legal division managed the transfer of ownership and the termination of previous agreements. This included negotiating employee contracts, supplier agreements, and property leases.
• Xero Support: Post-acquisition, we provided Xero integration to ensure a seamless transition of financial records and business accounting systems.

Results

Through our strategic guidance, the client was able to acquire full control of the business and resolve outstanding disputes. Key outcomes included:

• Business Acquisition: The client successfully gained 100% ownership, resolving the dispute and granting full operational control.
• Seamless Transition: The integration of Xero ensured that all financial and operational systems transitioned smoothly, allowing business activities to continue uninterrupted.
• Ongoing Support: BridgePoint Group continues to support the client with accounting, tax, and corporate secretarial services, helping to sustain growth and prevent future business conflicts.
• Human Factors: Our client worked extraordinary hours under enormous stress to help the business survive and deliver value to his clientele. Whilst the hard work is never done, resolution of the disputed matters meant that he could at least begin to breathe and see a future for himself and the business. Importantly, his personal reputation and industry standing not only remains intact but has only been enhanced..

With the ownership dispute resolved, our client is now focused on expanding their business, backed by our ongoing support.