To stick to terms of agreement with friends

[Bungybungy]

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.

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

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.

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

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

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.

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

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.

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

Cheeky cow.

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

Do not budge.

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.

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.

Tell her to speak to your solicitor.

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

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

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

No idea, but I guess allegedly shady business practices which is rubbish but in an industry based on reputation…

I think you need to respond with a very firm solicitors letter.

Solicitors letter in reply.

Acknowledge receipt of the letter. Refer to the buy back clause in your agreement, process, valuation and next steps should she wish to proceed.

If she has threatened you in writing - maybe a cease and desist letter reminding her that anything libellous that she shares about you will result in your pursuing legal means to prevent damage to your reputation.

On a separate note, you may need to address uncoupling the professional links between your accounts services and her company.

well counter threaten to put her as a bitch then!

YANBU stick to the agreement.

See this is why you don't mix business with pleasure.

I'd ask a solicitor to reply to this. Be firm and stick to the contract.

Then from now on you need to reply only through your solicitor.
I'm sure they can come up with legal language that says now you have threatened to smear me this is a legal matter and as such you cannot talk with her directly, everything must go through lawyers.

Hopefully that will give her enough of a scare to stop fucking about.

What a nasty piece of work she is !

F won't "out" you for anything as she won't want anyone to know you are the reason she was able to set up the business in the first place and that your advice has supported the success of this business.

F has set the tone by sending you a solictors letter, follow her lead and send one back asking for what you are rightfully owed.

Good Luck.