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BigCo isn't buying you for the $400k per year. Try to figure why they are buying you and work from there. Figure out what your number is and what you think thei
by relaunched 8y ago
BigCo isn't buying you for the $400k per year. Try to figure why they are buying you and work from there. Figure out what your number is and what you think their strategic value of your app is to them. That becomes the floor and ceiling for your negotiations.
The best way to know what you're worth is to engage an investment banker that knows there space, If your app is worth acquiring, there are several other companies that might want to acquire it. A banker's job is to bring those folks to the table and get you the most money. This sounds like a good engagement for a niche bank.
- bartozone 8y agoEverything he said ... Also really think about what it would take to actually grow it some over the next 10 years. Could you hit $500k next year? maybe $1M in 3 - 5 years? What is the long term potential? A growing company is worth a lot more to BigCo than a flat company.
- matt_the_bass 8y agoHow does one find a reputable banker? I’ve come across a number of them in my industry, none of whom I’d trust as far as I could throw them.
- relaunched 8y agoThis is where networking comes in. Find people that have sold businesses, work with connected law firms, investors, etc. Also, people that run / work at mature incubators or bigger vc firms would be a good place to start. Now that I'm thinking about it, people on the BD / corp dev side of BigCos would probably know who good bankers are.