Well, from your POV, the closer you can pay to 0 the better. Normally, I suppose you could use the 3X annual revenue formula as a start, but in this case, your

Well, from your POV, the closer you can pay to 0 the better. Normally, I suppose you could use the 3X annual revenue formula as a start, but in this case, your friend admits he isn't interested in developing it out anymore. Why not low ball an offer of $500 to start the negotiations, or ask him what he thinks the whole thing is worth? Your high number could be $3000 or more, but this way you might end up paying less.