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Old 11-05-2014, 01:35 PM
 
2 posts, read 131,217 times
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I am partner in a Acme inc 250K capital with my cousin. We do OK(?) thank god. Net profit for 2013 85K before tax. we rent two spaces, main space for 18K and B for 6K , we are and were taxed at 30%, landlord tax went from 10% to 20% in 2014 (for year 2013) .

(I can provide estimates for real estate value if needed)
is there an equilibrium in this deal for negotiating towards it?

what do you think for the ratio of our Real estate costs towards our net profit? what would be considered a dangerous maximum for our business health?

this is a real problem, the numbers are close but no quite the same to protect privacy.
i have good math background , but no economics. is there a category of this kind of problems in economics to look for?

My objective to figure out: what am i to expect for a rent raise?
assuming landlords have perfect knowledge of my business, and of each other.
A and B are cousins also (not ours! ).

we are operating in a small community, and difficult to find an trusting independent economic advisor

Last edited by mamspaps; 11-05-2014 at 02:57 PM..
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Old 11-05-2014, 03:57 PM
 
Location: The Triad (NC)
30,368 posts, read 67,022,637 times
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Quote:
Originally Posted by mamspaps View Post
what do you think for the ratio of our Real estate costs towards our net profit?
That it's an unreasonable standard. Use GROSS Sales for a percentage.

Quote:
we are operating in a small community, and difficult to find an trusting independent economic advisor
Then go to the next bigger city. Find the help.
Financial & Valuation analysis is a subspecies of CPA work.
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Old 11-06-2014, 10:59 AM
 
2 posts, read 131,217 times
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thanx , what is a dangerous maximum for RE_cost/Gross sales?

I dont know if it worths the expense and probably common sense negotiations will do the trick.
I was just asking references for applied economic game theory, that i could use. to understant more objectively
what goes on in similar situations.

either online or books if any ideas are welcome.
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