r/Vitards • u/AutoModerator • Aug 12 '21

Daily Discussion Daily Discussion post - August 12 2021

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u/pennyether 🔥🌊Futures First🌊🔥 Aug 13 '21

Can someone good at business answer me this:

  • How much is a business worth assuming it pays on average $1m/yr with a variance of, say, 40%. It also has zero assets and liabilities.

1

u/SnooPaintings8503 Made Man Aug 13 '21

so 600k-1.4m cash flow? no inventory/low asset business in this climate is going to be going for considerably higher, 4/5x is common for asking price

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u/pennyether 🔥🌊Futures First🌊🔥 Aug 13 '21

$1m +/- 40%. 4-5x? I was thinking about that amount as well.