I have been offered a small company to purchase at (admittedly) far below market value. A fellow employee heard about this offer, and asked if she could pay half of the purchase price and become a 50% partner. I thought this was a great idea until I mentioned it to my husband. He promptly vetoed the whole idea, stating that my fellow employee was welcome to be a partner, but only at 50% of the appraised value of the company - never mind the actual purchase price. Since he is the one that is actually paying for the company (not me), I have to abide by his decision.
My question: Is this fair? Standard business practice? Am I the one who is whacked because I think that if she pays 50% of the purchase price, this automatically entitles her to 50% ownership? I really don’t understand why the appraised value needs to be taken into consideration, since it is considerably more than what the selling price is.
Help.
