3 ms·
Why didn't you have any representation, such as legal or a deal negotiator, on your side? Broker isn't your friend. Is there any reason why you saw 2x "earnings
by cylinder 8y ago
Why didn't you have any representation, such as legal or a deal negotiator, on your side? Broker isn't your friend. Is there any reason why you saw 2x "earnings" as the golden ticket?
- runako 8y agoNot the OP, but I would consider 2x earnings as a reasonable discount given the youth of the company. Given a normal customer acquisition curve, most of the revenue would be coming from customers with tenure < 1 year. So a buyer could reasonably wonder how long these customers would stick around. Put another way: the LTV hadn't been demonstrated yet. (No scare quotes needed around earnings; the article doesn't suggest that there was any reason the owner couldn't just pocket the monthly earnings.)
- Kiro 8y agoI made a much bigger exit and didn't have legal representation either. It's completely overrated.