Matt, I think that because that's how I think of things, to answer your question. As I said there are other ways of looking at business value. I PREFER peace of mind knowing that my debt is at a minimum. Slower growth is the cost to this, and for some people that's just fine.
That's why I think that. YMMV. Mark Nash UnwiredOnline.Net 350 Holly Street Junction City, OR 97448 http://www.uwol.net 541-998-5555 541-998-5599 fax ----- Original Message ----- From: "Matt Liotta" <[EMAIL PROTECTED]> To: "WISPA General List" <wireless@wispa.org> Sent: Friday, November 30, 2007 11:24 AM Subject: Re: [WISPA] What basic ROI do you target? > Mark Nash wrote: > > Depends on your plan. If you ever want to sell your business or be bought > > out by your partner(s), then there is less value with leasing CPE. But > > there are many other ways of looking at it, too. > > > Why do you think that? Generally speaking, businesses that use leasing > tend to grow revenue and ultimately profit at a much faster rate than > businesses that use cash. Since debt is so cheap the business is worth > more by signing up more business. > > Leverage is a beautiful thing done correctly. This is how private equity > companies borrow money to buyout public companies. They simply borrow > money at a lower rate than the growth the business. Their profit is in > the arbitrage between the interest and the growth. > > -Matt > > > -------------------------------------------------------------------------- ------ > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------- ------ > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
