Re:Built to Last vs. Built to Flip
by kingkongrevenge on Wednesday April 16, 2008 @02:03PM
(#165405)
> are looking for bug returns, not cash thrown off
You can get huge returns from a profitable private company out of owners equity withdrawals over a short period. If the business is not capital intensive there's no real reason to go public, growth market or not.
I see nothing wrong with focusing on the "flip" if the business fundamentally needs a lot of capital or a big parent company. But nobody ever even mentions dividends or buybacks at private valuations. It indicates to me that people are most focussed on taking advantage of a possibly irrational market rather than building real businesses.
You can get huge returns from a profitable private company out of owners equity withdrawals over a short period. If the business is not capital intensive there's no real reason to go public, growth market or not.
I see nothing wrong with focusing on the "flip" if the business fundamentally needs a lot of capital or a big parent company. But nobody ever even mentions dividends or buybacks at private valuations. It indicates to me that people are most focussed on taking advantage of a possibly irrational market rather than building real businesses.