3 ms·
Depends on whether the company's parts are worth more than the company now versus the future of the company. Someone looking to make a quick buck probably doesn
by talmand 11y ago
Depends on whether the company's parts are worth more than the company now versus the future of the company. Someone looking to make a quick buck probably doesn't care that a long term strategy would net much more money over time than a quick sale. Such that, why wait ten years for ten million dollars when one can have two million dollars now? Totally depends on the company, much like your car analogy, and it may not be the right thing to do. But I suppose what the right thing to do may depend on the person you ask.
- WalterBright 11y ago2m into 10m in 10 years is a 17% annual return, pretty darned attractive. A company with such prospects is worth much more than 2m selling to someone else.
- talmand 11y agoThat's completely true, and my point. It's just that some people don't agree with that train of logic, they want the quick cash now.
- WalterBright 11y agoPeople with that kind of money tend to have financial good sense. Even if you don't want to wait 10 years, for 17% returns you can sell it today for much more than $2m to someone who will.