3 ms·
You typically sell at a multiple of the last 2-3 years average revenue.
by everdev 9y ago
You typically sell at a multiple of the last 2-3 years average revenue.
- fnayr 9y agoTypical for what? SaaS websites? Websites monetizing with ads generally sell for only around 12 months revenue, and apps generally sell for around 6 months, because of the volatility in users/downloads and uncertainty in the markets. Regardless, the poster you replied to was making the point (I think) that it's a little early to say you're making 'X-monthly' revenue when you're basing it on 1 or 2 months (which even the OP agreed with).
- pc86 9y agoYou could write a book filled the caveats you should have on such a generalized statement as this, and 2-3x revenue is certainly the exception rather than the rule. Plenty of business sell for a year's gross revenue or less.