3 ms·
I know this is a thought exercise, but those are some very weird numbers there. If these ever existed as two legitimate offers, we're looking at a 5M cap vs a
by irjustin 7y ago
I know this is a thought exercise, but those are some very weird numbers there.
If these ever existed as two legitimate offers, we're looking at a 5M cap vs a 50M cap.
Who is offering these numbers? Diligence has to be able to 'back into' the cap with traction or revenue. If the 5M cap feels "real", then the 50M cap is hiding something. Extreme red flags should be going up (outsized voting, extreme terms, weird clawbacks, etc). If the 50M cap is more real for the business, then the 5M cap is a joke and generally should be ignored unless there's a very specific reason to take it (but what could that be?).
Either way, a 10x evaluation difference is so off base something does not make sense.