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2% of 1 million is 20k. 2% of a trillion is 20 billion.
Do you see the missing variable in your post?
What is the equity value? What is EBITDA / EBITDA margin? what is the sector?
25mm of EBITDA is worth a lot more in SaaS than Oil & Gas.
You are a potential CFO. You should be able to deduce that the important question is how much is the company worth and what is 2% of that. Then you can calc how that compares to the $130K cash that you’re giving up.
You don’t see the irony in a CFO asking a basic financial question like this?
We just hired a CFO to one of our portcos. I hope the OP isn’t them.
Equity should be worth a lot more in the future. Unless you drive the company into the ground of course
No thanks. I like cash
If you have to ask probably not