4 ms·
> $500K/year might get you a 2X exit, Depends. When a company is subscale it's purchase price varies wildly. This is because standard revenue x multiple think
by indymike 3y ago
> $500K/year might get you a 2X exit,
Depends. When a company is subscale it's purchase price varies wildly. This is because standard revenue x multiple thinking just doesn't make sense when:
* you are buying the team (leaders, skill positions, etc)
* you are buying the tech (which may have great value in accelerating go-to market or adding competitive advantage)
* The small company holds key contracts
* IP has great value
As companies grow, they tend to get valued more traditionally...