I had no idea that my friend is a multi millionaire!!

[shockedpuppy]

Been friends for 35+ years. Both from "normal" working class backgrounds. I found out today, that her DH's business turned over £100 Million last year. Yes, One Hundred Million, it's not a typo.

They have a nice house in the South East, worth maybe £700k. There are no obvious signs of such wealth. They are not big spenders. We were at a party with them last month, and they were (as usual) quite slow to get the drinks in when it was their turn. We definitely got in more rounds. Gifts at Christmas are especially frugal, I normally receive something that has obviously been recycled as it's so bizarre, or it's obviously a freebie with another purchase.

I had been feeling quite good recently about money, as we pay off our mortgage later this year (house worth about £340k for context), and we will have a reasonable amount in savings. Now I just feel a bit Meh, as we will never attain anything like this. Just one million would do me, lol. I know comparison is the thief of joy, but I feel absolutely positively green with envy.

They will be able to do things for their 3 daughters when the time comes, like buy them homes outright - something we can't do.

We are all in our 50's, if that's of any relevance.

I'm sure this has been said many times but you don't seem to be grasping it, despite apparently being a business owner yourself:

The BUSINESS is worth £200million. The BUSINESS that belongs to your friend's DH. This doesn't make your friend a multimillionaire. The money belongs to the business and not it's owner - and certainly not the owner's spouse.

Of course you can be shocked. Anyone who says they wouldn't be it's lying. I worked for a truly lovely couple. I was their nanny so I obviously knew they earned far more than me. I was still a bit stunned when certain things gave away the true extent of their wealth. They weren't flashy in the slightest and both involved in charitable causes.

The company turned over 100 million!
They probably do have a million of their own...

I am shocked you think rich people can’t/dont hang out with people on benefits… do you think people on benefits are aliens? You sound pretty snobby. Today I was at a party full of people who were multi-millionaires - shock horror, there were ALSO friends of theirs on benefits (the kids play football together at the local club)… and guess what - people ACTUALLY spoke to them!! 😱

I didn't say they got 20 million by reusing tea bags. I said they stay rich by not wasting it.

They never said that. They said they have rich friends and friends on benefits, never said those people are friends with each other. Also you have no clue how much actual cash your friends have. They could have huge amounts of debt. You saw one document with limited information and jumped to ALOT of conclusions.

No, I don’t care what other people’s business turnover. it’s none of your business and company money doesn’t belong to them. I don’t think you understand what you’re looking at and you’re not a good friend if you’re posting about them.

No, they would not...

Not neccessarily. Depends on overheads and so many factors. Also, if there are multiple shareholders, it's common for everyone to have to agree before any dividends are taken out.

Yes, some companies have a much larger turnover than profit e.g. agencies. I get that. But OP also knows they have a 20 million net worth. Even if some of that is fixed assets, I'm guessing they're rich!

your businesses why?

I think you should tell the whole friendship group so everyone stops subsidising their drinks.

If they start to pay their own way that's another thing.

She’s looked at Companies House. That does not show net worth. Op knows nothing of the sort.

Comparison is the theft of joy.
Does this new knowledge change anything, and if it does, then ask yourself why.

I have an aunt that came into some serious money many years ago. All of a sudden, a lot of people she knew suddenly had financial crisis's and came asking for help.

I don't care what money the people in my life have (or don't). It is none of my business.

plenty of people wealthy on paper have got there by being frugal.
Recycled gifts as long as appropriate are not only low cost but also good for the environment - the cost of a gift shouldn’t matter, it’s the thought that counts!
I am nowhere even close to those figures by a long shot, but I’ve been a single parent with surviving on £30 a week to feed my family - now I earn much much more and I’m comfortable, I still shop similarly as I did back then, why not? We’re all fed well and healthy so why would I spend more when it’s not necessary?!
seems like your just jealous and a bit put out

She said she knows it so I'm going by what she said.

Because people quite often buy things for friends, subsidise them, etc. I would be annoyed if someone I thought was struggling was actually rich and let me buy all the drinks.

Well, she doesn’t. And neither do you.

That goes for every post in every thread. We have to go on the info we have.

In terms of value, and value to them, I'd probably go and find the "persons with significant control" tab within "people" on companies house. See what the ownership actually looks like.

Then I'd find the last few years profit after tax and see what that would deliver income wise and use that as my basis for how I thought about things. If they're in a £20 mil net asset position that's great but it doesn't necessarily mean it's realisable, as we see when companies go insolvent.

i would dispel it from your head if you want to be friends.

If they were to dissolve the company to access the wealth for starters there would be a large CGT liability ( 18 or 28% depending) and the Gov are taking away each year any tax advantage of being an officer in a company. By the time they sell out it will be even greater.

I finished with a “friend” for this reason alone. He was solid working class & a chav, married a gold digging chav. They got rich when their grandparents died who owned some council houses sold them on. He was left £1m and he owns a £1.3m home no mortgage he’s 50.

He had multiple foreign holidays with wife & 2 kids and they had the latest gear & want for nothing.

How I knew him originally was through work, he was thick as mince, but always fighting for work like his life depended on it. Literally elbowing people in the face for work.

Then the jigsaw pieces fell into place & in fact he was sheer & utter greed with his money-grabbing wife keeping up with the Joneses.

Having conversations with him complaining about his lot 24/7 for at least a year was the final nail in the coffin.

He would go cap in hand to his parents for handouts & they would cheesed off but caved in as the whole family was desperately keeping up appearances, his wife was the breadwinner & wanted him to be a stay-at-home dad, which he couldn’t face as he was desperate to create the right image. The wife I have a feeling was going to dump him as a useless, selfish, lazy lump now the kids were older and didn’t need babysitting.

Just things that came out in conversations were just eye popping: whereas I was going in the reduced aisle for food, couldn’t afford holidays for decades, clothes falling apart, no heating on. This chump was like money no object, and a carefree life.

His only beef was his own pettiness and jealousy over not be able to play golf during the day as much as he wanted to.

His endless tightfisted attitude & aggressive complaining about how hard done he was, deeply repellent man meant one day I told him to FO and blocked him & that was that.

I gather he & his wife have no other friends & selfish scumbag families, so maybe there are lots like him out there - chavs with money.

How many shareholders are there? Who are they would you even know as it usually only shows directors. So it’s hard to know where the wealth lies . Also does it include a value for good will that is speculative. There might be overvalues.

You can now see those who have control, usually due to ownership.

E.g. see image.

I wouldn’t dream of looking up a friends financial position whether it is public record or not it wouldn’t matter to me, I just couldn’t do it if they are truly a friend