The financial world is moving again, notable by the increasing number of new investments compared to the past 3 years. Having said that I spoke to a friend thi weekend whom I have not seen for ages who is having what I consider the most wonderful dilemma in the world. He is in the business of building medical infrastructure, hospitals in that regard. Currently he has this wonderful project to build an ultra-modern hospital of which he found an investor willing to finance the entire business from build to operation for 5 years then later find a big buyer. At the same time a bigger medical company approached him and willing to buy the entire project now at a premium considering future results.
So he asked for my advice. Well to me it was a simple question of financial benefits. Both offers look the same at the surface, although the value of money now is higher than the value of the same amount 5 years in the future. So next item is risk and reward, what is the probability that the project will fail compared to it becoming a resounding success and how much gain is five years going to give. This is a much harder point to consider and only he can actually answer.
Most importantly is how much he enjoys working on this project in the next five years compared to doing something else. I can't provide the answers and only him can decide, however if you are to decide what will you choose?
If I am in his shoes, and I would love to be in his shoes right now, I will most likely choose the most compelling and yet most challenging path between the current project and what I will be doing next.
3 comments:
Take the money and retire!
I think he should exit now, and use the money for a better cause
He should follow what makes him happy
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