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r/investingr/investing· u/Mnmlrun· 22h ago 0

Which business would you buy?

Investor summaryNeutral

Author asks which of two hypothetical tech firms (mature B2B SaaS vs high-growth AI infrastructure) to acquire with a $20M fund.

Bull points
  • Option A offers strong cash flow and a low valuation multiple.
  • Option B provides high revenue growth and exposure to AI infrastructure.
Bear points
  • Option A has slow growth and limited upside.
  • Option B is extremely expensive relative to its current revenue and profit.
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I have a $20M acquisition fund. Which of these two tech companies would you buy?

Option A: A mature B2B software company providing essential digital tools through a reliable subscription model.

Revenue: $225,000 (growth 10.5% YoY)

Net Profit: $67,000

Valuation: $800k

Option B: A frontier tech firm building proprietary industry infrastructure and AI

Revenue: $177,000 (growing 33% YoY)

Net profit: $53,000

Valuation: $19M

Which business would you buy?

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