7 ms·
What i don't understand is, if the seller is not in need for the whole selling price, and the MRR is covering his installment, why sell it? He will make $500K i
by vdfs 6y ago
What i don't understand is, if the seller is not in need for the whole selling price, and the MRR is covering his installment, why sell it? He will make $500K in 20 months and keep 100% ownership
- superhuzza 6y agoI imagine the founder enjoyed building it, but was tired of running it.
- Kye 6y agoSome people are able to feel like they have enough money and let others make it while they go after new things.
- haser_au 6y agoSeller can see the potential if others (with different/more experience) are brought on board to implement new ideas and generate more revenue. Option A: Retain 100%, and profit $500K over 2 years Option B: Retain 20%, take $100K of profits, but create an opportunity for uplifting the revenue potential. Seller took Option B, and now owns 20% of a business generating $1M+ each year (so his share is now $200k revenue), with more time on his hands.
- machomaster 6y agoIn Option B the seller was paid $400K, not $100K.
- aeturnum 6y agoI think it's a pretty good deal to get back 100% of the time you spend maintaining something while keeping 20% of the revenue.