Buying a business – confused on valuation

I’m looking on Empire Flippers to buy a business and the valuations aren’t making sense to me. Seems most of them are asking for about 3-4x annual net profit. Doesn’t this mean I have to work for nothing for 3-4 years before I make any money?

For example an Amazon FBA business is selling for $400k and they make $100k/year in net profit. I can interpret this as working for $0 salary for 4 years before I start earning $100k/year or if I pay myself a modest $50k/year salary, it would take me 8 years to break even on my investment then I will start earning $100k/year after that. How does this math make sense for someone who’s already earning over $100k/year working for a larger business? I’ve always wanted to be my own boss, but every time I look at the numbers I find it hard to walk away from a guaranteed $110-120k annual salary where I work 9-5 and take off 1-2 hours early every other day to go pick up the kids, watch their sports games, etc. What am I missing here?

submitted by /u/Musubi_Mike
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