A Dishonest Businessman Gets Outsmarted By a Clever Banker Who Delivers Vigilante Justice – But Was It Fair Play?
Two owners of a small company worth around $24 million find themselves at odds, with one accused of underhandedly stealing money from the firm and its employees. As tensions reach a boiling point, an ingenious plan is set in motion which rewards only one of the owners.
A Tale from the Finance Industry
The OP works at a small investment banking firm specializing in helping smaller companies who lack financial knowledge sell their business. A company with two feuding 50/50 owners, Tim and Roger, becomes their client.
Tim and Roger Built a Business
Tim and Roger can’t stand each other, indicating a deep-rooted issue between them. They all meet at a dinner meeting, where the OP initially finds Roger to be a nice, down-to-earth guy. Tim, on the other hand, comes off as a raging imbecile. He complains about the food and mocks a waiter.
The Reason for Hatred
Roger reveals that Tim has been stealing money from the company and its employees. Tim adjusted payroll and spent company money on extravagant purchases, including building a house for himself. Tim justifies his actions, claiming they were technically legal and that he deserved more.
Roger’s Generosity
Roger compensates employees out of his own pocket when Tim refuses to pay back the money he took. As tensions escalate, negotiations between Tim and Roger stall. The OP suggests the cleanest option is for either party to buy out the other owner’s stake.
The Ingenious Plan
The OP states the company is worth $24 million, making Tim’s stake worth $12 million. The OP suggests Roger buy out Tim’s stake for a significantly lower amount of $4 million. The plan aims to capitalize on Tim’s poor reputation in the industry and that Roger is the more suitable partner to take control of the business.
The Negotiations
Everyone agrees to the plan, and the OP sends Tim an offer letter and a non-disclosure agreement. Tim accepts the offer, settling for $6 million. Meanwhile, Roger’s reputation remains strong, as most people prefer to deal with him over Tim.
The Bankers Flip the Business
The company is re-sold six weeks later for a total of $28 million. The OP, his boss, and friends pooled money to buy Tim’s stake. They act as a counterparty, not as part of the bank, and independently profit with Roger during the resale.
Tim’s Downfall
Tim is furious when he learns about the sale but cannot do anything about it. He failed to hire his own bankers, which would have protected his interests.
A Twist of Fate
The OP’s boss and friends profit handsomely from the sale. Roger’s generosity and honesty pay off, while Tim’s greed and deceit lead to his downfall. In the end, justice is served.
A Lesson Learned
Tim’s actions and subsequent downfall highlight the importance of integrity in business. Roger’s willingness to compensate employees demonstrates the value of loyalty and fair treatment. The story serves as a cautionary tale for business owners.
The Power of Reputation
Tim’s poor reputation in the industry played a significant role in his downfall. People preferred to deal with Roger, which ultimately made the buyout plan successful. The story emphasizes the importance of maintaining a good reputation.
The Value of Financial Knowledge
The OP’s expertise in finance allowed him to devise the ingenious buyout plan. Tim’s lack of financial knowledge led to his underestimation of the company’s worth. This highlights the significance of understanding one’s finances in the business world.
A Bittersweet Victory
The OP’s expertise in finance allowed him to devise the ingenious buyout plan. The OP’s boss and friends gain financially. Roger also sells his business for a healthy profit and is free from a toxic business relationship.
Was Everyone’s Behavior Appropriate?
The readers in the forum had a lot of mixed views on the matter. Here are some of their responses…
Forum Responded
One responder wrote: “Tim should have hired his own bankers. He didn’t.”
Another reader wrote: “Whether you were acting on behalf of the bank or not, you came upon the opportunity as part of your work with the bank. There’s definitely some breach of fiduciary duty here? A conflict of interests?”
A different person states: “Sounds to me like you were his agent and acted in your own interest. If what you did was legal, it shouldn’t be. The guy was bad – but the way I see it, you committed fraud.”
What Do You Think?
What are your thoughts on their actions?
What would you have done in this situation?
This story is inspired by this thread.
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Alexander Veros
Alex is a writer for Top Dollar Investor, focusing on lifestyle, travel, and business stories. Alex has started several online businesses and is a blogger who loves providing quality content to help others. He is passionate about affiliate marketing, finance, and cryptocurrency.
