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Why would you vest an offer worth 3x revenue over 4 years unless your business was about to collapse? That's an atrocious offer as stated. You should get 3x e
by aneth 16y ago
Why would you vest an offer worth 3x revenue over 4 years unless your business was about to collapse? That's an atrocious offer as stated. You should get 3x earnings today (or some multiple depending on prospects and margins) and earn out more over 3-4 years.
Edit: Sorry I must be tired. This is a revenue multiple not income. Revenue multiples are not particularly helpful in valuing a company with a mature business model. Gross profit would be far more useful.
- Mistone 16y agovery good point - over that period the biz will earn that money anyway.
- jacquesm 16y agoIt may, it may not. There is a lot of information lacking.
- jacquesm 16y ago> Gross profit would be far more useful. Yes, and they have not mentioned their margins anywhere. 3x revenues might be generous (no further growth, lousy margins) or it might be terrible (lots of growth, great margins).