3 ms·
It all depends on the multiple. If someone is giving you 3 years of profit up-front, that's probably not worth it. If they're giving you 10 years of profit, tha
by gnicholas 3y ago
It all depends on the multiple. If someone is giving you 3 years of profit up-front, that's probably not worth it. If they're giving you 10 years of profit, that could make sense. You avoid having to work for that period of time, and you avoid the risk that something could go wrong (with the company, the economy, the sector) during that time. It also allows you to diversify your assets.
- lelanthran 3y ago> If someone is giving you 3 years of profit up-front, that's probably not worth it. TBH, 3 years of profit upfront is probably worth it if you have no good plans to expand that profit.
- gnicholas 3y agoReally? IMO 3x profit is a terrible multiplier. Depending on the business, 3x revenue could be worth it, but that's a completely different calculation. Of course, it also depends on how much work you're doing to sustain that profit. If you're working full-time to make this happen, 3x profit is a more attractive proposition than if you're just cashing the checks.
- lelanthran 3y agoWell, I was kinda assuming that it's a f/time job making the business run. If it isn't a f/time job then, you're correct, the calculus is quite different.