What Does a Business Mediator Do?

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  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 08 December 2018
  • Copyright Protected:
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Conflict in business relationships and partnerships sometimes arise. One way to handle differences that cannot be settled between two parties is to hire attorneys and proceed toward litigation. The role of a business mediator, however, is to settle disputes before any two parties need to enter a court of law. Upfront costs associated with hiring a mediator tend to be less than the expense for each of the relative parties to hire lawyers, and often disputes can be settled faster through mediation. One neutral business mediator is introduced into a dispute representing the interests of both sides.

Even if the wheels of formal litigation have begun turning, a business mediator can enter a dispute if it is still early enough in the process. One key benefit may be a lesser investment for both parties involved in a disagreement. Mediation should lead to a result that is acceptable to both parties even if each side has to compromise slightly. Of course, the final benefit is that both parties reach some terms before any conflict becomes escalated. Through mediation, both parties also avoid any formal courtroom litigation process that could take much longer to be resolved.


In order to be a business mediator, a professional must possess persuasive negotiation skills. This individual must represent a plaintiff and defendant in a mediation and must be able to lead both parties to some resolution. Some formal background or career experience in business law may prove beneficial to a professional in mediation.

There are many different circumstances that can bring different parties to the table in a business mediation. For instance, conflict could arise between partnership relationships that threaten the continuation of a business. Other disagreements might stem from compensation or ownership conditions in addition to details surrounding insurance, retirement, or other benefits. Violations to competition rules and property disputes could all warrant the introduction of a business mediator to the situation.

Business mediators might be equipped to handle a host of disagreements that can arise in an organization or may specialize in one area. Services performed by a mediation firm could be used by mom-and-pop type businesses or large commercial organizations. Family offices might also employ the services of a business mediator. If there is conflict within employees at a corporation, a business mediator might be used to settle those differences in order to create a more productive work environment for the rest of the company.



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