ASK HN: I'm very tired.... how do I sell my company?

Post by techiferous » Sun, May 23, 2010, 1:27 PM UTC

tgoing wrote: post #39

techiferous wrote: post #28

Earlier quoted context omitted.

Notice how your comment missed the mark emotionally. Someone took time out of their day to give you good advice and you implied that they don't care. You took an innocuous statement and painted it black. I know it was an honest mistake--I'm not judging you for it--I just want you to notice that. Also reread your post. Notice how you are describing depressive symptoms (fatigue and you even mentioned depression). Only…

>>Notice how your comment missed the mark emotionally. Yes, that's true.... It's been like a roller-coaster of emotions, and that influenced my comment. I've been thinking a lot before posting this to HN. >>Notice how you are describing depressive symptoms True... It has a LOT to do with the time that I've spent on it, the numerous negative feedback of people (that wouldn't work, too hard, you should do something els…

"It has a LOT to do with..."

Yeah, that sort of stuff can really wear on you.

"I believe that will still proceed"

Best of luck to you and I hope you can get out from under this burden soon.

Post by RockyMcNuts » Sun, May 23, 2010, 3:48 PM UTC

joelhaus wrote: post #36

RockyMcNuts wrote: post #27

Earlier quoted context omitted.

Sometimes a short answer is the simplicity on the other side of deep understanding. Do you value an ounce of gold based on the hours that went into mining and refining it, or a Picasso based on the quantity of paint that went into it? It's worth the value the buyer can get out of it, not what you put into it. Typically that's the expected values of future cash flows, discounted to the present using an appropriate ris…

Taking exception with some of the above statements on valuation. There are actually three relevant methods for deriving a value, with the circumstances & audience dictating which approach (be it single or blended) to use: 1) Income Method As stated, discounted cash flows. 2) Replacement Cost What would it cost me today to recreate this asset from scratch? 3) Comparable Sales What price has recently been paid for simi…

First, note my parenthetical comment.

Second, your answer is to a different question - what is a reasonable theoretical valuation for a minority shareholder based on various potential outcomes? Not: at what price could I sell 100% of the asset in the market right now?

An actual cash purchaser is always giving up a current cash flow because they expect a larger future cash flow.

In your example, 2 and 3 can also be viewed based on cash flows. If you plan to build the same thing, buying it instead eliminates the negative cash flow of building it. Comparable transactions are based on how others valued comparable cash flows.

Economically, it's always about the cash flow. Of course, economics isn't everything, there are trophy properties, social motives etc.

Re: ASK HN: I'm very tired.... how do I sell my company?

Re: ASK HN: I'm very tired.... how do I sell my company?