I have recently approached my business partner with a request to buy out his membership in our LLC. His involvement as of late is declining and a buy out was something we had planned on from day 1. I was very "young and dumb" when we started the business 4.5 years ago, so nothing regarding the buyout amount was set in stone.
He has given me his requested number and it seems a bit high. Keep in mind he has not entered our office in six months and simply handles accounts payable and makes deposits. He has brought in a few clients, but nothing more than what our existing clients already refer.
I feel the amount is a bit high. Is there are simple formula to determine what the buyout price should be for our business. We are equal 50/50 members in the LLC.