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AIBU?

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Original poster

To stick to terms of agreement with friends

265 replies

Bungybungy · 14/03/2024 10:05

Burner account. I’ve been friends with F for decades. She had a large social media presence. I’ve worked hard to establish my business and have been successful. I’m proud of what I’ve achieved. 5 years ago, F came to me with a business idea, wanting to set up herself. She didn’t at that time have the funds to set up by herself so I agreed to invest a not insignificant sum in return for 20% of the business. She was happy with that deal, and because I work in legal services, I got our guy who deals with contracts to draw up an agreement specifying what rights and responsibilities etc. Although this was an area she had worked in before, she had never actually run a business before. I guess that’s why she came to me in part, so it wasn’t just about the money. To her credit, and using my advice, the business has grown quickly and is well known. At the time of the investment I understood that I could just as easily have lost my money completely.

Our relationship is now very difficult as I’ve realised over the last 2 years that she’s been distancing herself from me, which is fine, relationships come and go, but last week I got a letter from her solicitor telling me that she was unhappy with my ownership and that she wanted to buy me out for just over my initial investment. Given the business is now worth several times over my initial investment, I can’t accept that (she put close to no money in herself). For her to pay me off would cost her 5 times my initial investment. AIBU to expect her to honour the agreement? I know she’s contractually bound but she’s been so vile about this, I’m second guessing myself. She keeps threatening to “out” my business via her social media(I have no idea what this means). I’m actually scared about what she could do.

OP posts:
FerryBerryHerry · 14/03/2024 12:19

Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

She sounds like a manipulative, childish arsehole who doesn’t take responsibility for anything

NotQuiteNorma · 14/03/2024 12:18

Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

Then the onus is on her to prove that. What exactly is she threatening to out you for anyway?

Pepsimaxedout · 14/03/2024 12:18

Tell her to speak to your solicitor.

Friendship is over. Ignore her at school. Block her on social media.

Original poster
Bungybungy · 14/03/2024 12:16

I get to see the accounts (my accounts team actually handle the companies accounts) so I know how well it’s doing. I think I’m just in shock a bit. Her whole following relies on her being this lovely, relatable person and she’s just, for me, become something entirely different. I still see her at the school gates and it’s just awful.

OP posts:
TheCatterall · 14/03/2024 12:12

I’d possibly ask for this to be moved to legal thread.

@Bungybungy massive squishes in your friend becoming so a selfish flakey mate.

I certainly wouldn’t give in. What’s she gonna do tell her followers how mean you are for wanting what she agreed to? Meh. You have a contract that sounds about right value wise and she could have had it checked out.

She could have done some simple and quick Google searching for what is common. Christ even dragons den would show her what’s a normal share or payback.

She was happy enough to take your money with her grabby mitts. Is she a Ltd or self employed company. I do wonder if she is actually making as much actual cash as she’s previously made out.

SemperIdem · 14/03/2024 12:02

Do not budge.

WeeOrcadian · 14/03/2024 12:01

You may be asleep well posting on the 'Legal' board too OP

AhNowTed · 14/03/2024 11:56

Plus, if it wasn't for your investment (not loan), she wouldn't have a business.

Cheeky cow.

IncompleteSenten · 14/03/2024 11:51

Don't get into arguments with her. Don't try to explain or defend yourself. Stick to the contract, make it clear you will take any threats against you very seriously and direct her to your solicitor.

She sounds like she's going to try everything she can to wiggle out of her obligation to you and the best thing to do is to refuse to play her game.

Nonewclothes2024 · 14/03/2024 11:41

Agreed , she owes you 20% of the business now.

AhNowTed · 14/03/2024 11:35

Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

This is bullshit.

If she wanted straight payback terms it would have been a loan which she would have had to repay.

Instead it was an investment which meant you risked your money for a return.

She can't have it both ways.

Dogdilemma2000 · 14/03/2024 11:32

Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

Wow. She’s nasty and underhanded. Friendship is definitely over.

clpsmum · 14/03/2024 11:31

NevergonnagiveHughup · 14/03/2024 10:26

Engage a solicitor and deal only through them.

As PP said. Offer to sell your 20% of shares to her for current market value, or you will seek another buyer. If her business is worth what you say, she will have no issue getting lender funding for the buy-out - or she can get a replacement investor.

and ask your solicitor to send a cease and desist letter regarding the threats she is making

Saymyname28 · 14/03/2024 11:26

Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

Oh wow that appalling. You have her a load of money. If she'd failed you'd have got none of it back and now she says you took advantage of her? How greedy and tacky.

I'd offer her a lesser amount buy out, where you still make a reasonable profit but that gets her out of your life.

moonfacer · 14/03/2024 11:25

YANBU, she sound slike a using twat. Get EVERY penny you're due, OP.

DarkDarkNight · 14/03/2024 11:23

Don’t give in to her. You took the risk not her, she wouldn’t be quick about paying you back your investment if the business hadn’t worked. Don’t be bullied in to letting her buy you out even at the 5x the initial investment. If it would be more financially prudent to keep hold of your share in the business then do so.

She seems very immature, she wants all the benefits of running her own business with none of the risks. If she wanted full ownership she should have acted fully in her own from the beginning.

Original poster
Bungybungy · 14/03/2024 11:20

She has first option for market value to be established on a multiple which she had previously agreed. She’s now trying to argue that she didn’t understand what she signed and that I took advantage of our friendship to get her to sign.

OP posts:
Saymyname28 · 14/03/2024 11:20

She wouldn't be successful if it wasn't for you. Doesn't matter how great her idea was or how well she ran the business. It wouldn't be possible without your investment.

Just have your solicitor write back that you'll sell your shares for their market value.

I've always wondered though how it would work if she just started another company and started trading though that instead, it seems fraudulent but is it actually illegal?

Dogdilemma2000 · 14/03/2024 11:18

Bungybungy · 14/03/2024 10:44

I think the problem is, due to her social media following, she is quite used to getting lots of stuff for free, I mean, ridiculous amounts of press/ad things. She’s so used to people giving her things she can’t understand why I won’t.

Sounds like a spoilt brat that got lucky tbh.

Business is business. You own 20% of the company.

Rainydayinlondon · 14/03/2024 11:17

Mothership4two · 14/03/2024 10:56

Put it this way, if the business had floundered and you made a loss, would she have repaid you any/all of it? No, she would have expected you to take it on the chin. She is wrong morally and legally.

Was about to say exactly the same thing! OP took a financial risk which has now paid off.

BoohooWoohoo · 14/03/2024 11:15

Stick to the contract. She’s distancing herself from you and you’re a legal professional so you should be taking what is rightly yours. If she wanted to pay you less then she should have bought you out a long time ago.

WhingeInTheWillows · 14/03/2024 11:11

She’s no longer your friend. What is she threatening to ‘out’, if you can say? Get a c&d letter sent as you are worried. I would stick to the agreement and communicate only by email or preferably through a lawyer. Definitely no phone calls or private meetings where she can say you’ve said all sorts. Does the agreement mention who you can sell to, does she have first option?

IncompleteSenten · 14/03/2024 10:59

Stick to the contract.
If she posts anything defamatory then you can deal with that. I would tell her that tbh. Say you have saved proof of her threats and will not hesitate to take legal action against her if she defames you in any way.

Don't allow yourself to be bullied by her.

She is not a friend and even if she was, that doesn't mean you should allow her to screw you over.

YouveGotAFastCar · 14/03/2024 10:58

You own 20% of the business.

She can buy it back, but that has a clearly defined cost. She can offer you a lesser cost, you are free to reject it.

The friendship is long gone, so stick to the business facts now. Send a reply stating you are happy for her to buy her shares, at the market rate.

Mothership4two · 14/03/2024 10:56

Put it this way, if the business had floundered and you made a loss, would she have repaid you any/all of it? No, she would have expected you to take it on the chin. She is wrong morally and legally.

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