“For the very early stage businesses, I'd like to see free cash flow within about two years”
Ann Berry · Masters in Business · Providing Capital to Tech Companies: Masters In Business with Ann Berry
Play from 28:58
28:58
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
requires early-stage companies to show free cash flow within about two years
two years
Said nearby on the same subject
“Simple, predictable, free cash flow generative businesses... we’ve kind of focused on, for the most part, kind of the franchise business model. Again, royalty, collecting companies.”
“Then our reason for living, then if we can now pay the car off, that zero a week, we go back to this cash flow, there's an extra $269, and then we just do the $850 a week that we were paying on the car that goes direct into savings, and then within two years, we have effectively, so $850...”
GJ
Glen James
WWGD with Glen James ·
How they work$850 weekly; $88,000 in about two years; target $100,000Share this moment
“If you buy companies at 4x… you’re buying 10 M worth of cash flow… you’ll have cash flow from subsidiaries to fund later deals.”
GB
Giuseppe Balzano
Buyers and Builders ·
Why it worked4-5x cash flow, 10 M cash-flow purchase yields ~8.5 M actual cash flow…Share this moment
“And they essentially will underwrite your working capital for the first 18 months, two years until you get to cash flow positive, which in most of these cases is predominantly salary, right?”