5 years in investment banking, my friend / business partner has 10 years in T1 strategy consulting and did a top 5MBA. We want to join forces and buy a 1M ebitda business. The prospect of having freedom doing our own thing and having an asset that compounds is exciting.

Only thing is he makes about 500k a year and is on track for partner promotion and I also make 375k-500k a year depending on bonus.

It almost seems risk adjusted it would make more sense to just stay in our careers no?

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With that type of W2 comp, keep working, buy the 1M EBITDA business, and hire out the management, but be heavily involved as advisors. But not get bogged down by the day to day.

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This right here.

Sounds like it is dependent on your appetite for risk and making a “career pivot”, at the cost of having a lower W2 wage in the short-term.

My thought is that, if you two are passionate and talented enough, you could potentially scale your joint venture, assuming the first acquisition goes well. From there, your earnings, and whatever subsequent carry you receive, could definitely outpace what you two were making in consulting and IB, respectively.

Worst case - even if it doesn’t outpace, you two tried something new and actually know what it feels like to be your own boss. That in itself is worth the intangible value imo.

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Would you be buying a business are buying a job? If what you’re after is freedom that’s the important question. I’ve seen a lot of people buy businesses over the years (particularly small businesses) that ended up becoming all-consuming commitments.

When looking for funding, do you prefer a loan, a grant, or just learning about options before deciding?

Curious to hear how others approach this.

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