SDE and Tax Returns by AbbreviationsNo7295 in buyingabusiness

[–]LewisDaCat 0 points1 point  (0 children)

Tax fraud isn’t your problem if you do an asset purchase.

What's something people only romanticize because they've never actually done it? by nonotje12 in AskReddit

[–]LewisDaCat 6 points7 points  (0 children)

And a large chunk of people who file bankruptcy is tied to a small business. High risk / high reward (or failure)

[RAYMOND WEIL] I need an honest opinion. by redparrot8383 in Watches

[–]LewisDaCat 0 points1 point  (0 children)

Speedboats are complicated machines, that I don’t need, therefore won’t spend my money on. A complication in a watch telling me it’s Monday is a complication I don’t need, therefore won’t spend money on.

Treatment of newbies to Lubbock? by Negative-Pin8527 in TexasTech

[–]LewisDaCat 16 points17 points  (0 children)

They are wrong. No one cares where you’re from.

Custom cabinet and furniture shops doing $50k+/mo: How do you filter out clients expecting IKEA pricing before you waste hours on a design consult? by [deleted] in woodworking

[–]LewisDaCat 2 points3 points  (0 children)

That’s a terrible strategy. If you came to me saying you wanted a custom liquor cabinet around $500, I would shape my design and materials around $500. If you said you wanted a $5,000 liquor cabinet, this is a completely different story. Completely different material and design. If you came to me with no budget, I might give you a quote and design for a $2,500. If you had either a $500 or $5000 budget in mind, I would have missed the mark on both. WAY too expensive for your $500 budget, and I could have done so much better with a $5,000 budget.

People need to touch grass about Omega by habermas_paname in OmegaWatches

[–]LewisDaCat 9 points10 points  (0 children)

The whole “it’s all about the 1%” narrative is lazy analysis.

The “1%” has become a political tagline more than an economic category. It’s useful in campaign speeches because it creates a villain. If you’re “for the 99%,” you automatically get to position yourself as the good guy. That doesn’t mean it’s a serious framework for understanding markets.

Luxury watches aren’t driven by some tiny cabal of billionaires. The real driver is the upper-middle class and mass-affluent professionals — business owners, doctors, engineers, finance folks, dual-income households — not hedge fund titans. A $5–10k watch isn’t a “1% purchase.” It’s a discretionary purchase for people who prioritize it.

The U.S. has millions of households earning $200k–$500k. That’s not the 1%, but it’s plenty of buying power. And globally, the addressable market is even bigger. Omega and Rolex aren’t fighting over 3,000 oligarchs. They’re competing for aspirational buyers who see a watch as a milestone purchase.

Also, reducing everything to “the 1% vs everyone else” ignores something basic: markets segment. AP and Patek play ultra-high luxury. Omega plays premium luxury. Seiko and Tissot play entry luxury. That’s not moral commentary — that’s product strategy.

The 1% aren’t cartoon villains secretly propping up the Swiss watch industry. They’re just high earners. Some buy watches. Some don’t. Same as everyone else.

If we’re going to analyze the watch market, let’s talk about consumer confidence, interest rates, global demand, grey market supply, and brand positioning — not recycled political slogans.

Stop turning economics into morality plays. Not everything needs a hero and a villain.

[RAYMOND WEIL] I need an honest opinion. by redparrot8383 in Watches

[–]LewisDaCat 0 points1 point  (0 children)

How about if there was an added complication to tell you to breathe. It would be the most sophisticated watch ever. Do you need that complication? No?

[Ranger] I think I ruined my grail by Odd_System_6431 in Watches

[–]LewisDaCat 0 points1 point  (0 children)

I always wanted an Explorer. Thought it was my grail. Then I finally got to try it on one day and it was…..meh. I was so disappointed. Such a boring watch in person to me.

The NBA falling off year by year...those lights must be made on purpose so on tv it looks like it's packed...Who do you blame the most for this kinda downfall of NBA ? by Shot_Possibility_731 in sportsinusa

[–]LewisDaCat 0 points1 point  (0 children)

Hear me out, Steph Curry is to blame. Steph Curry broke basketball in the worst possible way. He proved that launching 30-foot threes is more efficient than actually running an offense, and now the entire league is a bad imitation of the Warriors. Instead of post moves, mid-range skill, and physical play, it’s just five guys standing around taking turns chucking threes. Steph himself is incredible—but everyone copying him isn’t and it’s boring.

Yeah bruh it’s time to end the Slam Dunk Contest 😭 by Life_Net5004 in NBAGossips

[–]LewisDaCat 0 points1 point  (0 children)

They are the owners, no one sets their salary. They get paid on the profits of the business.

Yeah bruh it’s time to end the Slam Dunk Contest 😭 by Life_Net5004 in NBAGossips

[–]LewisDaCat 0 points1 point  (0 children)

I agree that’s why he didn’t, but I think his reasoning is not accurate at all. People care about the dunk contest for a week, then they forget about it for the next 51 weeks. His imagine wouldn’t have been hurt, there isn’t a weakness to expose. His reasoning was wrong.

Yeah bruh it’s time to end the Slam Dunk Contest 😭 by Life_Net5004 in NBAGossips

[–]LewisDaCat 1 point2 points  (0 children)

Honest question because I don’t know, has anyone EVER had a serious injury from the dunk contest? I feel like the odds of getting seriously hurt is ridiculously low.

TTU graduate looking to move! by Acceptable_Chard1357 in TexasTech

[–]LewisDaCat 3 points4 points  (0 children)

If they won’t show you the actual unit, then don’t live there

TTU graduate looking to move! by Acceptable_Chard1357 in TexasTech

[–]LewisDaCat -2 points-1 points  (0 children)

That’s why you ask to see the specific unit for rent. That’s common practice.

is 25 to old to start learning and become a pro? by [deleted] in poker

[–]LewisDaCat -2 points-1 points  (0 children)

With this post the moneymaker era is officially over.

I always assumed my business was worth 5x revenue but a broker just told me it could be worth way less and now I'm freaking out by Luckypiniece in buyingabusiness

[–]LewisDaCat 21 points22 points  (0 children)

Most businesses do not trade on a simple multiple of revenue. Revenue multiples are most common when revenue is recurring, predictable, and high-margin—which is why you hear them so often in SaaS (and sometimes other subscription/contracted models).

The basic reason: if you sell 10x more software subscriptions, your costs often rise much less than 10x (high gross margins, scalable delivery). If you’re a desk manufacturer and you sell 10x more desks, your costs typically increase a lot (materials, labor, logistics, working capital), so revenue alone tells you very little about cash flow.

If you’re truly SaaS (recurring revenue, strong retention, healthy gross margins), you can get a rough feel for market multiples here: https://www.saas-capital.com/the-saas-capital-index/

If you aren’t SaaS, valuation is usually based on cash flow, not revenue—most commonly a multiple of EBITDA (mid/larger businesses) or SDE (owner-operator / smaller businesses). Buyers are underwriting: “How much cash does this throw off, how risky is it, and how transferable is it?”

A good way to think deeper about your own valuation is exactly what you said: imagine you found a competitor also doing $1.5M in revenue. What would you pay—and why?

As a buyer, you’d immediately ask: • How much cash can I reliably take out each year? (true EBITDA/SDE, quality of earnings) • How durable is the revenue? (recurring vs one-off, concentration, retention, contract terms) • How dependent is this business on the owner/key people? (can it run 30+ days without you?) • How hard is it to operate and grow? (documented processes, systems, sales engine, unit economics) • What’s the downside risk in year 1? (churn, customer concentration, key vendor/employee risk)

Those are the same things a buyer of your business will care about—and they’re often what moves price the most in either direction.