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They had $13MM in annual revenue (in 2014) and were acquired for $45MM (~3.5x). Interesting.
by ramoq 11y ago
They had $13MM in annual revenue (in 2014) and were acquired for $45MM (~3.5x). Interesting.
- nedwin 11y agoThey will end the year with $20m revenue and the deal is $20m cash plus incentives. So effectively a 1x deal at the outset, rising to 2x if they meet performance and retention goals.
- danieltillett 11y agoMe thinks the future is not looking too bright.
- zazpowered 11y agoWhat are some possible reasons for why the numbers are like this?
- ig1 11y ago(I don't know any specifics on this case but speaking generally about this type of business) It could well be that revenue figure includes "pass through revenue" (aka GMV) as the company isn't public they're not required to follow standard accountancy practices (GAAP, etc.) in reporting revenue. For startups most of their burn rate tends to be salaries and burn rate tends to be greater than revenue. So assuming they have 20 employees and were break-even and an average revenue per employee of between 150-200k that would imply an actual revenue in 3m-4m range which would be in line with the acquisition figure.