Take $10m or own a business annual $10m in revenue

Michael's Black Son

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$10 million in cash

- $2 million goes to Meech & Tee for that work

- $2 million goes to some cheap farmland in the middle of nowhere USA (hopefully hundreds of acres)

- throw $2 million in 5 startups

- $2 million into my own Super PAC

- dice up $2 million and sprinkle as much of it to some community organizations
 

GatorStaceyAdams

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Really depends on the type of business. Something with recurring sales? Is it an established business with a track record?

Standard Lower Middle Market economics:
  • $10mm Revenue
    • Typical EBITDA Margins = ~30%
    • Which results in a yearly EBITDA of $3mm
  • LMM businesses typically trade for 5.0x multiples
  • $3mm x 5.0x = $15mm valuation

 

KidJSoul

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Oh yeah not to mention, how much of the 10m business is going to your salary? Will the valuation be good enough to sell it for a large amount?
 

Ethnic Vagina Finder

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I’ll take the business. Since OP didn’t specify what type of business, I will pick something with low overhead costs and since it’s generating $10 million in revenue then I would already have an established market share. The business would be in the tech space. A new technology to which I OWN the patent. I would seek out investors and take the company public.


And in 10 years, while most of you trying to hold on to that $10 million being frugal, I’ll be a billionaire hosting fundraisers, being an Ethnic Vagina Finding philanthropist.
 
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