3 ms·

Sure; will do.

• earl 15y ago
  Hi Rob -- Perhaps you could broadly discuss how you made the economics work? As I understand it they had a site that they were putting virtually zero effort into, so they must have wanted a pretty hefty multiple of the annual income. Because even if that income was declining, it was still taking zero effort to generate. You, on the other hand, had to have assumed you could make the revenue grow significantly via active investment, right? You did mention that eg broken sql or query parsing was leaving a ton of data and/or money on the table as it were, but you couldn't have known that ahead of time, could you? So maybe you could explain something like: eg they wanted 3x annual profits, and I made assumptions x, y, z around potential growth via active marketing, etc. Or perhaps you dug up some competitors to imply that future revenue declines would be more rapid than expected? Also, perhaps you could explain how you came to your opening offer -- did you literally email them and say hi, I'd like to buy this and here is my estimated offer, or did you get some numbers first? If the former, how did you ballpark the income? Even if you don't care or have time to answer the above questions, thanks a bunch for being willing to share these things. I feel like these deals must happen pretty often but there isn't much of a public guide to doing them.
  • rwalling 15y ago
    Sure, I'll cover many of these in part 3; thanks for asking.