To stick to terms of agreement with friends

Jeez, that was quick! Doesn't look good on them.

I don’t think it’s naivety. I’d say greed. She wants it all. Were it not for your seed capital she’d likely have nothing. I wouldn’t accept a penny less than what I’m due if you can possibly help it.

Nice. I’m surprised at her naivety. She cannot imagine that you would expect her to simply accept the return of the original investment? That’s just foolish. You’ve supported her financially therefore she needs to buy you out with a revalued amount, should you wish to be bought out, the business sounds pretty profitable.

I thought the same, but sadly when greed creeps in some want it ALL

It irritated me that the ex-friend apparently "gets a lot for free" so expected this too, because that was never the arrangement in the first place, but anyway you're doing the right thing leaving it with the solicitors OP, and I hope this gets resolved without too much damage

Absolutely horrendous behaviour on her part. Typical of a social media influencer.

Wow you put most of the money in and only got 20% and now the cheeky c**t is trying to stiff you for your rightful growth.

Why didn't you go for more than 20% originally?

You have a legally enforceable contract. Stick to it. It’s what she agreed.

Get your solicitor to write back stating that a) you would also like to discuss compensation for her threats to ‘out your business’ and b) if she carries out her threats you will also sue for defamation.

Solution: Decide on what is most essential for You at this current time and select that option.

Lots of posts focusing, rightly, on the values angle but how about the life’s short and processing this (or even engaging her) is a waste of your time. If you need the cash then defo but otherwise refer her to a third party to do the contact work and save all the hassle that she is weaponising.

• If she’s feeling over confident then passing her onto someone else will show her that you’ve got better things to be doing and none of them are related to her or her business. It becomes transactional then not emotional between parties. Win for you.

• The other option is to quickly read Chris Voss’ book ‘Never Split The Difference’ (gold dust for negotiations of all types). Run the ‘How am I supposed to do that?’ Which pushes everything back to her as she’s the one with the discounting plan in mind.

She’ll be well aware of what pressures she can or cannot bring to bear but this will cost her time and focus and heaps of energy plus likely lead to mistakes.
Likewise defending against her will do the same for you. It’s a race to the bottom.

It’s not as though the OP lent £10 and now wants £50 back. She purchased (let’s say) 20% of the business for £10. The business is
now worth 5 times more so her 20% share is worth 5 times more (£10 x 5)

There’s only one person being a dick here and it isn’t the OP. It’s her cheeky ‘mate’ who’s refusing to give the OP what her share is worth.

It never ceases to amaze me what people will do for money. And it's always the worst types who go on about "the principle of it" while trying to slither out of their obligations.

Make sure you remain polite the whole way through, and wish her the best with her endeavour. There's no need to be stingy with good wishes, there's plenty to go around (plus she won't ever be able to point the finger).

Has she missed the point that if your 20% share of the business has increased 5 times in value, then so has her 80%? Sounds like you're both quids in and she should be celebrating, not whinging.

Oooo what a sour puss ! No doubt she’ll go deep into victim mentality.

well done OP.

if she is getting bought then Don’t they have to check all claims on the business first and usually offer a three year agreement ?

I think

It is to my great shock and disappointment that I find that despite the clear nature of the investment and contract that she regards the money as a GIFT not an investment and plans to return only what I put in.

should read:

It is to my great shock and disappointment that I find that despite the clear nature of the investment and contract that she regards the money as a LOAN not an investment and plans to return only what I put in.

A gift isn't returned. A loan accrues interest. An investment in your case is a proportion of the business

I doubt your daughter will be missing her at all. Generally you find kids are a bit more astute in friendships than adults.

To add, I think you’re doing the right thing and she is selfish and crazy.

It’s so sad for the kids that this toxic woman’s behaviour is going to affect their friendship

I’m sorry but that’s not it works, OP has a share of the business and if she wants to buy her out the business needs to valued by a third party company. If OP wants to give her a discount that’s fine and at her discretion but she doesn’t have to.

Would her friend have agreed to share OPs loss if the company failed? You don’t get to change the terms of the agreement after the company succeeds.

This is why business with friends is a bad idea and I’m glad OP has a legal coTracy not a handshake agreement.

Hi OP,
If you are communicating informally with your friend ask her if she has ever seen Dragon's Den. If not recommend that she watches a few episodes. Perhaps your mutual friend could recommend it to demonstrate how investment in businesses work. It is literally what every person on the show asks for - cash for a share of their business - frequently a reduction in the % owned for getting the investors cash back to them within a year or 18 months. How could anyone not know an investor wants to make money and own a % of the business?

If you are getting a solicitors letter I think it would be worth saying that slander will be dealt with via the legal process i.e. suing her - in the legal speak recommended by your solicitor.

You could say that as your relationship appears to have broken down perhaps it is for the best that she buys you out - but that will have to be at a fair market rate after a business valuation. You could always hint you could sell your share to someone else - someone else might not be as agreeable as you.

Oooo it’s just gone 5

Highly recommend you issue a statement as suggested above after talking to your own lawyer(s).

I thought that!