My Partner Is Trying To Scam Me Out of Our Business

Summary

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The Ramsey Show Highlights

Episode: "My Partner Is Trying To Scam Me Out of Our Business"

Date: May 8, 2026
Host: Ramsey Network Advisors
Caller: Steven

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Main Theme

This episode centers on a business partnership in crisis. Steven, the caller, describes how his business partner is attempting to undercut the value of their jointly owned landscaping business to either acquire Steven’s share for nothing or dissolve the business and restart solo. The Ramsey advisors offer strategic, practical, and legal insight on navigating the buyout process, partnership dynamics, and protecting oneself in a breakdown of trust.

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Key Discussion Points & Insights

1. Partnership Breakdown and Buyout Dispute

• Steven’s Situation:

  • Co-founded a landscape business with a 50/50 partner ("friend"), grown successfully.
  • Partner now wants out, claims business is worth only its assets, despite profit and goodwill.
  • Steven obtained both an informal and a lender-guided valuation (~$775k total; Steven's share $350-360k) ([01:55-02:21]).
  • Partner refuses to pay to buy Steven out, wishes to dissolve and then "start the exact same thing" solo ([01:06], [02:43]).

• Advisor Insight:

  • Legal and financial position depends heavily on the operating agreement.
  • “If the agreement says you get a valuation, then I don’t see how it’s illegal for you to take that out of the business checking account and go get eval. What’s stopping you?” (Business Advisor 1, [03:37]).

2. Operating Agreement, Valuation & Buyout Terms

• Details in Operating Agreement:

  • Requires formal valuation; either SBA loan or structured buyout (20% down, then installments over 15 years) ([02:52]).
  • Steven feels lengthy installments are risky if partner defaults.

• Debt and Asset Implications:

  • ~ $120k in business equipment/machine loans ([03:28]).
  • Both partners liable for the LLC’s debts ([06:24], [06:28]).

3. Personal and Geographic Stakes

• Steven’s Position:

  • Moved to partner's hometown (away from Nashville/Ohio) for the business ([04:17]).
  • Family, expecting a child, wife’s job/health insurance in current area ([05:05]).
  • Concerned about future competitiveness and client poaching if split occurs ([05:53], [06:08]).

• Advisors Emphasize:

  • Steven has strong leverage if he remains; current infrastructure, clients, and debt obligations remain with LLC.
  • Steven can demand fair compensation if partner wants him out.

4. Possible Solutions and Next Steps

• Paths Forward:

  • If valuation says business is worthless, let partner leave and keep the business ([04:10-04:13]).
  • If partner wants the business, he must buy Steven out per operating agreement ([08:09]).
  • If buyouts break down, dissolve company, liquidate assets, and start fresh but expect competition ([07:05]).
  • Suggest revisiting and possibly redrafting the partnership agreement to reflect new arrangements ([08:47]).

• Advisor Summary:

  • “You gotta say good luck, bud. Game on.” (Business Advisor 1, [08:36]).
  • “A ship that does not sail. Partnership.” (Business Advisor 2, [09:08]).

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Notable Quotes & Memorable Moments

• On the partner's intent:

  • “No, he doesn’t want to pay for the company. He kind of just wants to dissolve it and then start the exact same thing on his own, you know, the second that that’s done.” — Steven ([01:06])

• On the valuation dispute:

  • “That’s a big gap from ‘it’s worth nothing’ to ‘it’s worth three quarters of a million dollars.’” — Business Advisor 1 ([02:21])

• On facing competition if the partnership dissolves:

  • “We’re going to be competing, you know, for the same clients.” — Steven ([05:56])

• On the messy reality of dissolving a partnership:

  • “You guys need to come to a consensus on what these next steps are. Otherwise this is going to be a bloodbath.” — Business Advisor 1 ([06:12])

• On the impact on friendship:

  • “And it ruins the friendship, it does.” — Business Advisor 1 ([09:13])

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Important Segment Timestamps

• Partner’s Intentions & Valuation Disagreement: [00:09] - [02:21]
• Operating Agreement & Debt Issues: [02:52] - [03:28]
• Personal Stakes & Location Concerns: [04:17] - [05:05]
• Competition & Client Poaching Discussion: [05:53] - [06:11]
• Legal, Financial, and Practical Options: [07:05] - [08:47]
• Advisor Conclusions & Final Thoughts: [08:47] - [09:15]

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Summary of Advice

• Enforce the operating agreement: Partner cannot force Steven out without following proper buyout procedures and valuation.
• Valuation is critical: Stick to facts and agreements, not personal opinions on worth.
• Don’t get pressured: If buyout is not feasible/fair, stay and run the business or negotiate a dissolution on your terms.
• Re-examine partnership: If current agreement doesn’t serve either party, consider renegotiating to avoid further conflict.
• Personal wellbeing: Factor family, health insurance, and location into the decision—business is not the only stake.

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Tone & Vibe:
Pragmatic yet empathetic, with the classic Ramsey candor—acknowledging both the financial and emotional toll of a failing business partnership.

End Message:
Partnerships are tough, but legal agreements, clear valuation, and an unblinking look at personal priorities are your best tools in a breakup.

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Transcript

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[Steven]

so a few years ago, a friend of mine came to me and asked to start a business. It's a landscape service, you know, project based business. And things have been going well, you know, we've been growing, making money. And then out of the blue said that, you know, he can't do, doesn't want to continue the partnership anymore and we have an operating agreement. So I said, okay, well we'll go about it the way that the agreement says, get evaluation done. And I kind of did that. Whereas he is saying, no, the business isn't worth anything. It's only worth what we own. And I believe that's different based on, you know, the goodwill and the cash flow and the profit that we've made. And we've kind of reached a stalemate at this point. And I don't really know where to go from here as far as how to kind of leverage the situation to kind of get this clean and over with. You know, I got.

[Business Advisor 1]

So does he not want to pay to get evaluation because he thinks it's worth nothing? Is that the deal?

[Steven]

No, he doesn't want to pay for the company. He kind of just wants to dissolve it and then start the exact same thing on his own, you know, the second that that's done.

[Business Advisor 1]

What is the valuation cost?

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[Business Advisor 1]

What is the valuation cost?

[Steven]

I mean, 1500 to 2500 depending on.

[Business Advisor 2]

And have you done that already? Have you gotten an evaluation?

[Steven]

I've, I've got an informal one. And then I spoke with an SBA lender that's a friend of mine and gave him our tax returns and said, hey, say I was trying to buy out my business partner. What would you guys approve, you know, on a loan? Because obviously they're, they're not in the business of making bad deals and they set a valuation of around 775, you know, so making my 50% shares, anywhere from that 350 to 360 range.

[Business Advisor 1]

Yeah, that's a big gap from it's worth nothing to it's worth three quarters of a million dollars. Now, I would not go into debt to buy him out. If you wanted to continue this, you could do some sort of like profit sharing.

[Business Advisor 2]

Yeah, sorry, I'm a little confused. Is he just wanting to leave?

[Business Advisor 1]

He wants out and wants to start his own.

[Steven]

He wants me out.

[Business Advisor 2]

Oh, he wants you out. Oh, I'm sorry.

[Business Advisor 1]

He basically wants to run a solo business.

[Business Advisor 2]

He's gonna just leave. And I was like, well, just let him and you keep the whole business.

[Business Advisor 1]

Yeah. What does the operating agreement say if the business. One of the partners want to get out?

[Steven]

It says, obviously get a valuation done, you know, then multiply that by your shares, we're 50, 50 owners. And then you can either do it through an SBA or if the operating agreement says a 20% down and then four quarterly installments for 60, you know, 60 quarters. So basically 15 years, which is kind of egregious, I think. And that puts me at risk in case, you know, he defaults. And I would, you know, that whoever is on the other end of that, I wouldn't imagine that that's a.

[Business Advisor 1]

Do you guys have any debt in the business currently?

[Steven]

Yeah, like equipment and machine loans, probably a little over a thousand. I think 120,000. Hmm.

[Business Advisor 1]

Well, I mean, if the agreement says you get a valuation, then I don't see how it's illegal for you to take that out of the business checking account and go get eval. What's stopping you?

[Steven]

I don't. That's not the. That's not the issue. It's that whatever that valuation comes back as, he's going to say, no, it's not worth that. I'm not paying that. Why don't you just buy me out and then I'll. There's a two year non compete attached to our operating agreement, but.

[Business Advisor 1]

Well, if it's worth nothing, then you don't have to buy him out. Isn't that what he's saying?

[Business Advisor 2]

That's what I'm thinking. I don't understand.

[Business Advisor 1]

Let him, let it be worth nothing and go, all right, there's nothing to give you.

[Business Advisor 2]

And then he can leave and start his own thing, right?

[Steven]

Yes. Now, the other part that comes into it is I picked up my, essentially my life and moved out of Nashville down to, you know, we're kind of in his home turf where he grew up. I'm from Ohio. Football brought me down here. And so I'm in an area that really the only reason I moved down here Was because we were running a business that was. That was doing well. And so are you capable of running

[Business Advisor 1]

the business on your own or hiring someone to help?

[Steven]

Sure, yeah, no doubt. I'm definitely capable. But if he's going to turn around and start another.

[Business Advisor 2]

Well, where do you want to live, Steven?

[Steven]

About, you know, in the Nashville area. We're about an hour and some, you know, an hour and change.

[Business Advisor 2]

So you would rather live somewhere else? So then why don't you go get new clients elsewhere?

[Steven]

I can do that. Obviously, you know, selling the house that I live in now. I got my first child due in a month. Not even a month. Less than a month. My wife's, you know, we do health insurance through her job here. The logistics of it all are just not great. To leave with no form of compensation or buyout. And in that case, I'm guessing nobody

[Business Advisor 1]

would actually buy your business.

[Steven]

I mean, no. Probably not in a very desirable location. And is that what.

[Business Advisor 2]

And that's his argument, is that it's not worth.

[Steven]

Yeah, he says it's not worth. Obviously, if we sold it to an outside buyer, it would be tough for them to do that. Now, all the contacts that we've built in the last three years, if he is still going to continue, is he

[Business Advisor 1]

going to poach all the current clients?

[Steven]

He. I mean, yeah, essentially, yes. If we were to divide ourselves right now and I start my own company, and you start your own company, we're going to be competing, you know, for the same clients.

[Business Advisor 1]

He's gonna like, hey, I started my own thing. Come. Come over here.

[Steven]

Sure. Yeah. You.

[Business Advisor 1]

You guys need to come to a consensus on what these next steps are. Otherwise this is going to be a bloodbath.

[Steven]

Exactly.

[Business Advisor 1]

And there's debt worried.

[Business Advisor 2]

Now, the debt part.

[Business Advisor 1]

Whose name is the debt?

[Business Advisor 2]

Y.

[Steven]

It's an LLC, you know, so we're. We each have 50% of it.

[Business Advisor 1]

Okay, so if he leaves the business, he's still liable for the debt.

[Steven]

Yes.

[Business Advisor 1]

And has he thought through that?

[Steven]

I were to say, unless I were to. Well, no, he doesn't want to leave the business. He's not going to leave the business. He wants to get me out of the business.

[Business Advisor 2]

I thought he wants to start his own.

[Steven]

Yeah.

[Business Advisor 2]

And you don't want to do this. You don't want to do this anymore, right?

[Steven]

I do, but I'm not. I don't want to. I'm not going to do it by myself down here where I'm going.

[Business Advisor 1]

And he can't afford to buy you out to do this solo.

[Steven]

I Mean, he could.

[Business Advisor 2]

He's saying that he won't though.

[Business Advisor 1]

Yeah, that's what I'm so confused about. Well, he wants to do it solo.

[Business Advisor 2]

He can't afford a couple of options either. You guys just dissolve the business, you start your own thing, he starts his. You sell the assets, pay off the debt and just say what a bad deal that was. You go your way, I go mine. And you gotta outperform him in your new. In your new gig, you know what I mean? To, to get it competition wise. Because you're not willing to move. I just asked you in the middle of the call and you're like, well, I got a baby on the way, a house, my wife. So you're moving.

[Business Advisor 1]

You're stuck regardless of the business.

[Business Advisor 2]

So we're. So you either are going to do this business or do a business like this or you got to go find a different job or you go move and do this business. If you feel like the competition, I would move.

[Steven]

You know, I would move if, you know, we each took six figure salaries last year and essentially nothing's going to change for, you know, for my partner. Whether we dissolve or he buys me out, like he's still going to continue like, like business as usual.

[Business Advisor 2]

Well, you.

[Steven]

And so without me in the picture, there goes a six figure race. So I'm figuring if I could be compensated somehow for, you know, giving you. You're not wanting this company back.

[Business Advisor 2]

Yes, but Steven, but that makes. It doesn't make sense. If he wants out, if he wants, if he wants the business by himself, then yes, then he needs to write you a check. I 100% agree. And if he's not willing to write you a check, then you can say, I'm not leaving the business. Then he has to decide he's out and he may go start his own thing. And then, yeah, you got competition in the area, but it is what it.

[Steven]

So yeah, but I still have the infrastructure and everything of our business. Correct?

[Business Advisor 2]

Yeah. Yeah.

[Business Advisor 1]

So you gotta, you gotta say good luck, bud. Game on.

[Steven]

Yeah.

[Business Advisor 2]

And then you can.

[Steven]

That's kind of what I was thinking that it was going to end it on is, well, if you're not going to buy me out, then we're going to continue to be partners.

[Business Advisor 2]

100.

[Business Advisor 1]

This is a classic. We can do this the hard way or the easy way. But yeah, the debt tied to. It's a whole nother thing. You guys got to make sure that's taken care. You guys form a new agreement saying, hey, we're staying in this thing. Until the debts are paid. And then here's how it's going to get divvied up. I think maybe you rip up the current one and draw a new one up. That makes sense for both of you, because the current one is not not really working.

[Business Advisor 2]

A ship that does not sail. Partnership.

[Business Advisor 1]

Nailed it.

[Business Advisor 2]

That's a hard. It's a hard thing to do.

[Business Advisor 1]

And it ruins the friendship it does.

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