\
  The most prestigious law school admissions discussion board in the world.
BackRefresh Options Favorite

What's the liquidity of a small company owner?

Someone who owns a small company with low 7 figure EBITDA an...
jet-lagged lime private investor
  04/23/26
it varies so much. most of the businesses are trades owned b...
Curious Coral Home Depressive
  04/23/26
Describe the range of outcomes.
jet-lagged lime private investor
  04/23/26
wdym? they all do great.
Curious Coral Home Depressive
  04/23/26
It depends on the business, but with "low seven figures...
narrow-minded alcoholic step-uncle's house liquid oxygen
  04/23/26
All true but my question is more about how much cash they ke...
jet-lagged lime private investor
  04/23/26
Are you planning on robbing one?
Emerald Adventurous Telephone
  04/23/26
I own one of these businesses. My total liquid assets equal...
jet-lagged lime private investor
  04/23/26
Ah, now I understand. I think it depends on many factors: wo...
Emerald Adventurous Telephone
  04/24/26
Any idea how much liquidity the owners have personally?
jet-lagged lime private investor
  04/25/26
I said it was a "business," but it's actually a no...
OldHLSDude
  04/25/26
Nice! Congrats to you on this. I think this sort of life is ...
narrow-minded alcoholic step-uncle's house liquid oxygen
  04/24/26
Appreciate you saying so. There are still many issues. I w...
jet-lagged lime private investor
  04/25/26
Depending on the size of the business (and the industry to s...
Richard Ames
  04/25/26
Enough to keep the lights on for six weeks is a good baselin...
awkward bisexual coffee pot library
  04/23/26
...
Big Boltzmann Site
  04/23/26
...
jet-lagged lime private investor
  04/23/26
at least 11
splenetic exciting range
  04/25/26
11 what?
jet-lagged lime private investor
  04/25/26
...
Buy your next house instantly with Zellow!
  04/25/26


Poast new message in this thread



Reply Favorite

Date: April 23rd, 2026 4:27 PM
Author: jet-lagged lime private investor

Someone who owns a small company with low 7 figure EBITDA and somewhere in the dozens of employees? How much cash, liquid stock, etc. do these guys typically have on hand?

Seems like a lot of these guys have great businesses but spend or reinvest a lot and don't have a ton of cash just sitting around.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49837802)



Reply Favorite

Date: April 23rd, 2026 4:33 PM
Author: Curious Coral Home Depressive

it varies so much. most of the businesses are trades owned by ascended scumbags and their finances are exactly what you'd expect.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49837820)



Reply Favorite

Date: April 23rd, 2026 7:27 PM
Author: jet-lagged lime private investor

Describe the range of outcomes.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838431)



Reply Favorite

Date: April 23rd, 2026 8:13 PM
Author: Curious Coral Home Depressive

wdym? they all do great.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838521)



Reply Favorite

Date: April 23rd, 2026 8:17 PM
Author: narrow-minded alcoholic step-uncle's house liquid oxygen

It depends on the business, but with "low seven figures" EBITDA ($1m - $3m), an owner ought to be able to pull out $500k - $1m annually in addition to a reasonable salary. The bigger thing you see in these situations is stuff getting run through the business. "Work" trucks and what not. Employing spouses and family is another major perk.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838535)



Reply Favorite

Date: April 23rd, 2026 8:43 PM
Author: jet-lagged lime private investor

All true but my question is more about how much cash they keep on hand. As well as liquid securities like in brokerage accounts. $1 million? Less? More?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838583)



Reply Favorite

Date: April 23rd, 2026 9:22 PM
Author: Emerald Adventurous Telephone

Are you planning on robbing one?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838729)



Reply Favorite

Date: April 23rd, 2026 10:43 PM
Author: jet-lagged lime private investor

I own one of these businesses. My total liquid assets equal about one year's EBITDA. That feels really tight to me and I am trying to stockpile more cash.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838869)



Reply Favorite

Date: April 24th, 2026 2:34 PM
Author: Emerald Adventurous Telephone

Ah, now I understand. I think it depends on many factors: working capital needs, e.g., receivables (size and timeliness of collection), inventory, investment needs,etc., plus growth trajectory, how cyclical is the business, and revenue and expense predictability. I usually look at it in terms of how many months of expenses with no income could I endure. 3 months is the goal I have set for a small business on whose board I sit. We're nowhere near that at present, but it's a goal.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49840003)



Reply Favorite

Date: April 25th, 2026 12:31 AM
Author: jet-lagged lime private investor

Any idea how much liquidity the owners have personally?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49841244)



Reply Favorite

Date: April 25th, 2026 5:42 PM
Author: OldHLSDude

I said it was a "business," but it's actually a non-profit. We try to run it like a business.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49842665)



Reply Favorite

Date: April 24th, 2026 2:36 PM
Author: narrow-minded alcoholic step-uncle's house liquid oxygen

Nice! Congrats to you on this. I think this sort of life is better than virtually any other.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49840010)



Reply Favorite

Date: April 25th, 2026 12:12 AM
Author: jet-lagged lime private investor

Appreciate you saying so. There are still many issues. I wake up every Monday morning with a sword of Damocles called payroll hanging over my head. Bottom line, no matter what. That's before you get to the challenges of managing an organization, dealing with regulatory pressure, keeping the flow of customers coming, etc.

I am very blessed and very thankful. But the stress is insane sometimes. I am trying to stack enough cash and diversify enough that the business doesn't dominate my life to such an extent. But that's a long process.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49841237)



Reply Favorite

Date: April 25th, 2026 6:43 PM
Author: Richard Ames

Depending on the size of the business (and the industry to some extent), you may be in a position to bring on a "professional" #2. Lots of guys out there who can't get from zero to one, but who can take a smaller company with meat on its bones and scale it.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49842828)



Reply Favorite

Date: April 23rd, 2026 10:11 PM
Author: awkward bisexual coffee pot library

Enough to keep the lights on for six weeks is a good baseline

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838820)



Reply Favorite

Date: April 23rd, 2026 11:31 PM
Author: Big Boltzmann Site



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838949)



Reply Favorite

Date: April 23rd, 2026 11:06 PM
Author: jet-lagged lime private investor



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49838929)



Reply Favorite

Date: April 25th, 2026 12:27 AM
Author: splenetic exciting range

at least 11

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49841241)



Reply Favorite

Date: April 25th, 2026 12:28 AM
Author: jet-lagged lime private investor

11 what?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49841243)



Reply Favorite

Date: April 25th, 2026 8:19 AM
Author: Buy your next house instantly with Zellow!



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/#49841456)