einarvollset

12 ms·

61.
by einarvollset 7y ago
PE is buy side, parent asked about sell side.
62.
by einarvollset 7y ago
Basically, there are 3 types of buyers: value PE, growth PE and strategic. Value pays 3-4x, growth 4-7x, strategics ¯\_(ツ)_/¯ Stripe would be a strategic for Baremetrics.
63.
by einarvollset 7y ago
We do as low as $1m ARR: discretioncapital.com
64.
by einarvollset 7y ago
Usually not at the LOI stage, no. The ones you quote a post purchase agreements I believe.
65.
by einarvollset 7y ago
This is the only reality based, sensible comment in this whole thread. Well done.
66.
by einarvollset 7y ago
Beyond talking to a knowledgeable M&A advisor who does deals in the range you’re looking at, I’d take a look at usesummit.com (full disclosure: am an investor)
67.
by einarvollset 7y ago
Extremely rare at the kind of enterprise value I see ($5-50m mostly). From what I hear also extremely hard to enforce (clause is usually very vague).
68.
by einarvollset 7y ago
Above about $1-2m enterprise value, any half serious buyer will require exclusivity as part of an LOI. In fact, it is a good signal of an unserious buyer if you get an LOI without a binding exclusivity clause.
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Show HN: Applications are open for TinySeed's 2020 batch
9 points by einarvollset 7y ago|1 comments
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by einarvollset 7y ago
Claim to, but lots of them seem to crap out where we are. Will check a couple when it goes down
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Ask HN: Internet during PG&E outages – ideas?
2 points by einarvollset 7y ago|4 comments
72.
by einarvollset 7y ago
Indeed. This is also why you should make sure any equity you get in the acquirer as part of the deal is as high up the preference stack as possible.
73.
by einarvollset 7y ago
The answer to your question is that it depends on how big the discount the core team is willing to take to do so. They will usually need to take a discount because as a buyer the risk increases if the whole core team is bailing. Which makes
74.
by einarvollset 7y ago
"Where do you draw the line?" That's the ting, there is no exact science here. It's an interpretation by the relevant state agency (like most taxes really). For example, CA has been cracking down hard lately, dunno about
75.
by einarvollset 7y ago
It will probably come as a surprise to you (it did me several years ago), that it’s not simply up to you and the company hiring you if you are considered a freelancer. This is not a matter of billable vs guaranteed hours. It’s a classificat
76.
by einarvollset 7y ago
“1. Big buyers are bullies: Large tech companies exert negotiating power over founders and selling companies because they can, and stack the deck in their favor with buyer-favorable terms.” Well duh. Gravity is a bitch. What else is new. Th
77.
by einarvollset 7y ago
I think I probably disagree. Hear me out. 1. “Money” = cash. (Hard to argue with that I think) 2. Cash is simply a more efficient means of exchange or store of value than custom IOUs (checks basically) or barter (I need milk, you have C++ c
78.
by einarvollset 7y ago
Yes but. If you take “cash” or “money” out of it, do you still agree with your own argument? What if you said “lots of things would be less valuable if nobody could cooperate to build anything”? Again, arguing in good faith.
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by einarvollset 7y ago
“Everyone is always in debt” Assume this is true & that death erases all debt (the latter is true most places I think). Is that a bad thing per se? I can see it being obviously bad if we’re saying debt as in debtors prison. As if being
80.
by einarvollset 7y ago
With falling house prices? Good luck with that.
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by einarvollset 7y ago
I am actually in favor of building more housing. But I think that doing so will (on top of prices already being projected to fall) put further downward pressure on house prices. To think that this is a rosy story for everyone with no losers
82.
by einarvollset 7y ago
Keeping in mind that these are not tech types with the associated salaries, you can’t see how a market price decrease could bankrupt or evict someone? Mkay
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by einarvollset 7y ago
That’s one way to look at it sure. Would you be in favor of bailing out those that lost their house when prices were falling in ‘08-‘10?
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by einarvollset 7y ago
Because few people own their house outright, and the equity in their house is their only form of financial cushion or retirement savings. In many cases, the kind of house price drop agitated for would bankrupt and evict them, with no way of
85.
by einarvollset 7y ago
While I have friends who have had to leave the Bay Area because of high rents, I also have (non tech, multi-generational local) friends who have the vast majority of their wealth tied up in their (or their parents) house here. I don’t love
86.
by einarvollset 7y ago
> Socialized medicine is freedom until the government is the only provider of medicine and doesn't want to serve you for some reason, such as a shortage. Medicine is scarce, like food, and we've learned that it's dangerous
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by einarvollset 7y ago
By strategic, I don’t mean “sensible” or “smart”, I mean it’s a buyer where the asset is considered strategic, hence it would always fit under your “when they have some advantage” umbrella.
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by einarvollset 7y ago
Usually it's dependent on the person selling (or their advisor). If a company is very profitable (e.g 50% margins) then an earnings multiple makes sense and the advisor will essentially present the company in such a way that it's
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by einarvollset 7y ago
Typically an earnings multiple will be higher than a revenue multiple (e.g 8x vs 4x - which can be equivalent if the profit margin is large enough)
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by einarvollset 7y ago
Depends on kind of business, profit level and size. A small (sub $1m in annual revenue) services company will typically sell on some multiple of "seller discretionary earnings" - basically; how much cash can the owner operator tak

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