2 ms·
Congrats! Sounds like a good outcome. From what I've read (my understanding may be wrong), using a revenue multiple at all for valuation is surprising for compa
by abuehrle 6y ago
Congrats! Sounds like a good outcome. From what I've read (my understanding may be wrong), using a revenue multiple at all for valuation is surprising for companies A) under $5M total valuation and B) with lower growth rates (looks like Baremetrics grew ~11% in the last 12 months). Can someone who knows better than I weigh in on the valuation math here (in general -- no one knows the exact details of this transaction, obviously). I'm not questioning it, but I am curious to get perspectives on this real world example.
- philjr 6y agoThe revenue multiple is probably not the metric they used to arrive at the valuation, but it's certainly a normalizer that people use to compare outcomes. Multiples of trailing 12 months net profit would be more common for a smaller entity.