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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I own a business (50-50) with my brother. It is a large mobile

Customer Question

I own a business (50-50) with my brother. It is a large mobile home park. We owe no money on the land or mobile homes. We own 52 mobile homes that rent out and the other part are lots that are rented. The business brings in a gross of about $30,000 a month. We are going to get out of business together and are going to bid against each other to buy the other one out of their share. The park just appraised at 3 Million dollars. Since I own half of the equity (1.5 million), what would be a good amount to bid for the other half of the park and still come out financially stable.
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

Do you think that your brother will bid over $1.5 million?

MyVirtualCPA :

You don't want to come in too high, because the equity share is only worth 1.5 million

MyVirtualCPA :

However, you know your brother better than anyone ... would he be willing to bid over the value of the share in order to get the stake?

MyVirtualCPA :

If you do not think that he will bid more than 1/2 then that is where I would start