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Typical buy-out of a small business with a proven revenue stream is 7X annual gross. Source: Bruce Williams talk show. You can also speak with a business broker
by yourapostasy 15y ago
Typical buy-out of a small business with a proven revenue stream is 7X annual gross. Source: Bruce Williams talk show. You can also speak with a business broker to feel out a rough rule of thumb with someone who is a middleman for buyers and sellers of small businesses every day.
Showing her that you are serious about taking your mutual business to the next level by being willing to commit to 7X her share ($69,300, likely in installments) may convince her to put in more time into pulling her share of the work. You are essentially offering to lock in her upside, with the implied optimism that you will make back many times that once you own the product. If she is perceptive, she'll see that you wouldn't be offering this to her if you didn't think you would make it back and then much more besides, and that could motivate her to put more effort into the product.
Another option is to explore a royalty arrangement. She agrees to sign over her ownership (which seemed to be loosely conditioned on participation level) in exchange for a perpetual or term-based royalty to sit back and do nothing. The term could be temporal ("5 years") or metric-based ("until X% of the functions committed to the repo are fully authored by me"), level ("X% of gross sales") or tapered ("start at X% of gross, drop to Y% per fiscal quarter"), pretty much the sky is the limit on what you can make up and negotiate.