<p>I everyone. I wanted to see how people here handle toxic people. My husband has a 10% business partner (my hubby has the other 90) and this guy has been a nightmare. He started as a 20% partner, bringing in 20% of the capital to start a new business venture (we own 2 other business without any type of partnership) The venture has been going well as far as the growth of the business, but this partner is crazy. He is very hot and cold and one day he is all sunshine and rainbows and the next day “hell hath no fury”. My husband bought 10% back from him a few months ago and said he would do the rest as soon as he could. Of course tuitions were due in January, so we were thinking March or April, but this guy calls every day asking for his buy out. Some conversations have gotten ugly. This business has a great deal to do with marketing on social media and forming relationships with other businesses. Now he calls and says if we don’t buy him out today (his contract states he if he can’t buy us out, he can sell his portion if he wants to dissolve his partnership. My husband was doing him a favor on the first buy out) He will publish all emails and all conversations that he has recorded over the course of our business relationship. Besides, the exposure of many trade secrets and intellectual property exposure, it is just plain childish. Any thoughts from anyone?</p>
<p>Do you have anything in your contracts that prohibits him from disclosing trade secrets, etc? If not, be sure to get one when you do the last buyout. yikes. This guy could blackmail you later.</p>
<p>“He is very hot and cold and one day he is all sunshine and rainbows and the next day “hell hath no fury”.”</p>
<p>Moody people often have something mentally wrong with them…depression, personality disorders, bi-polar, or something else. </p>
<p>The threats also suggest that maybe something is wrong with him mentally.</p>
<p>This sounds like a black/white thinker, maybe someone who “splits” people into all-good/all-bad black/white. </p>
<p>I would get that 10% to him ASAP, with protection statements included, and get him out of your lives. </p>
<p>A toxic business partner is in someway better than a toxic MIL or BIL if you know what I mean. At least he wants to sell it back to you - the alternative would truly be worse. You need a business attorney to draw up a buyout with all the protections that you need to protect your business. Will he take a note payable in installments? Don’t you have some other credit you can draw on to pay him sooner rather than later? </p>
<p>Beg, borrow or steal to get the money to pay him off. However, before he gets the money I’d make him sign a non-disclosure that he cannot discuss your business with anyone or he will pay you … make up something - 10x the value of the buyout, etc. </p>
<p>I want him out more than you know. We may be able to leverage some things and get him out. What really irritates me is he claims he will post all these calls and emails on youtube. I know under our state law he has the right to record the call even without our permission but they say he cannot use the calls for “ill” purposes or he exposes himself to civil litigation. Would that not be an ill purpose? We do not have a False Light tort in Texas.</p>
<p>Do whatever you have to do to get rid of him asap. Can the business get a bank loan or a line of credit??</p>
<p>"Beg, borrow or steal to get the money to pay him off. However, before he gets the money I’d make him sign a non-disclosure that he cannot discuss your business with anyone or he will pay you … make up something - 10x the value of the buyout, etc.
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<p>And have him sign a “non-compete” clause…for like 5 years after. Otherwise, he’ll just take all that he’s learned for you and set up shop elsewhere…and maybe that’s his plan right now.</p>
<p>This issue isn’t really just about dealing with toxic people. Its about protecting your livelihood. You need to treat this issue very aggressively and hire an attorney. I work in small business finance, and I can tell you that I’ve seen businesses and the personal finances of business owners destroyed by situations like this. Don’t wait to solve this problem!</p>