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If anyone is interested in how much Appointment Reminder sold for: https://feinternational.com/buy-a-website/6192-b2b-saas-professional-services-106k-mrr https:

by grow91 10y ago

If anyone is interested in how much Appointment Reminder sold for: https://feinternational.com/buy-a-website/6192-b2b-saas-professional-services-106k-mrr https://feinternational.com/buy-a-website/6192-b2b-saas-prof...

forgetsusername 10y ago
$120,000 in credit card debt (with interest) for a sale of $215,000 (less taxes)? Something doesn't add up.
- cperciva 10y ago
  He said there were four offers within two days, so the final price may have been significantly higher than the original asking price.
- pja 10y ago
  patio11 can confirm or not as he chooses, but it sounds to me as if the $120,000 credit card debt was incurred whilst spinning up Starfighter.
  - tptacek 10y ago
    No. (I think the post is clear about this, too).
    - graeme 10y ago
      Oh. He perhaps he should clarify, as that's how I read it as well (I'm sympathetic to Patrick, so I wasn't reading that with a skeptical eye). He wrote something about taking equity out of AR to put into Starfighter, using credit card debt.
- sethev 10y ago
  What are you implying? He said in the post he paid off most of his creditors after closing. If the final price was $215k it certainly seems possible to pay off most of $120k with that.
  - forgetsusername 10y ago
    >If the final price was $215k it certainly seems possible to pay off most of $120k with that. Right. I was "implying" that perhaps the business wasn't as good a business as I thought.
    - charlesdm 10y ago
      A business like AR with $60k in profit sold for $215k seems like a pretty good deal for the seller. On a yield basis, that seems like a great deal, but given the work involved (+ chance of the business being disrupted), I'm not sure I like that profit to price paid ratio. It certainly isn't a price I would have paid.
      - sjg007 10y ago
        Why? Seems cheap? <4x? Next phase is a sales force to get customers.
- perlgeek 10y ago
  From reading the report, I didn't think that he made 120k $ debt just to make the sale; rather he financed his second startup with credit card debt, and used some of the AR sale to pay back the debt.

by grow91 10y ago

forgetsusername 10y ago

$120,000 in credit card debt (with interest) for a sale of $215,000 (less taxes)? Something doesn't add up.

cperciva 10y ago
He said there were four offers within two days, so the final price may have been significantly higher than the original asking price.
pja 10y ago
patio11 can confirm or not as he chooses, but it sounds to me as if the $120,000 credit card debt was incurred whilst spinning up Starfighter.
- tptacek 10y ago
  No. (I think the post is clear about this, too).
  - graeme 10y ago
    Oh. He perhaps he should clarify, as that's how I read it as well (I'm sympathetic to Patrick, so I wasn't reading that with a skeptical eye). He wrote something about taking equity out of AR to put into Starfighter, using credit card debt.
sethev 10y ago
What are you implying? He said in the post he paid off most of his creditors after closing. If the final price was $215k it certainly seems possible to pay off most of $120k with that.
- forgetsusername 10y ago
  >If the final price was $215k it certainly seems possible to pay off most of $120k with that. Right. I was "implying" that perhaps the business wasn't as good a business as I thought.
  - charlesdm 10y ago
    A business like AR with $60k in profit sold for $215k seems like a pretty good deal for the seller. On a yield basis, that seems like a great deal, but given the work involved (+ chance of the business being disrupted), I'm not sure I like that profit to price paid ratio. It certainly isn't a price I would have paid.
    - sjg007 10y ago
      Why? Seems cheap? <4x? Next phase is a sales force to get customers.
perlgeek 10y ago
From reading the report, I didn't think that he made 120k $ debt just to make the sale; rather he financed his second startup with credit card debt, and used some of the AR sale to pay back the debt.