Wow, 15% broker fee! Didn’t know brokers charge that much
If they bring you the buyer, that feels fair.
But in this case, it seems the buyer found him thru his own content, which is wild.
I sold TinyPilot, my first successful business
21–30 of 329 posts
Re: I sold TinyPilot, my first successful business
#22Author here. I'm happy to answer any questions about this post, the sale process, or my time running TinyPilot.
I would be interesting in reading the ,,buying process'' part of the same deal from the buyers.
BTW tinypilot.com is down: https://www.isitdownrightnow.com/tinypilot.com.html
Re: I sold TinyPilot, my first successful business
#23Kinda scary the lifetime profit is less than what a sr developer might expect at a big tech firm.
I agree this was successful and assume it's rewarding in many other ways!
But still...
Re: I sold TinyPilot, my first successful business
#24I understand wanting to move on, but... from an outsider it looks like you sold just as the company started getting big enough to be interesting.
Re: I sold TinyPilot, my first successful business
#25> I wanted a buyer who would keep investing in the company, not a competitor who would just axe the product or bleed it dry. God, I hope the buyer lives up to your expectations.
The buyer is small, so at least they can’t let the product languish out of apathy.
Re: I sold TinyPilot, my first successful business
#26Earlier quoted context omitted.
Congratulations on building something of value and successfully selling it. It's quite the achievement and most don't get to this level. I do have to say, I was somewhat surprised by the low multiple on the valuation, but perhaps that's just what the range is for a business of this nature. We're spoiled in the world of software and recurring revenue. What about the tax implications of the sale. Have you figured out h…
Thanks! > I do have to say, I was somewhat surprised by the low multiple on the valuation, but perhaps that's just what the range is for a business of this nature. We're spoiled in the world of software and recurring revenue. Yeah, from what I've heard, SaaS businesses sell for a much higher multiple, often selling as a multiple of revenue rather than earnings. The other thing that's really reduced valuations is inte…
I can only assume there must spring up an industry around liquidating software companies in some kind of shell scheme!
Re: I sold TinyPilot, my first successful business
#27Kinda scary the lifetime profit is less than what a sr developer might expect at a big tech firm. I agree this was successful and assume it's rewarding in many other ways! But still...
I haven't gotten that far in the post, but won't owners usually take a salary?
Re: I sold TinyPilot, my first successful business
#28Digestively, how did you handle all that dessert in such a short timeframe?
Re: I sold TinyPilot, my first successful business
#29Earlier quoted context omitted.
Congratulations on building something of value and successfully selling it. It's quite the achievement and most don't get to this level. I do have to say, I was somewhat surprised by the low multiple on the valuation, but perhaps that's just what the range is for a business of this nature. We're spoiled in the world of software and recurring revenue. What about the tax implications of the sale. Have you figured out h…
Thanks! > I do have to say, I was somewhat surprised by the low multiple on the valuation, but perhaps that's just what the range is for a business of this nature. We're spoiled in the world of software and recurring revenue. Yeah, from what I've heard, SaaS businesses sell for a much higher multiple, often selling as a multiple of revenue rather than earnings. The other thing that's really reduced valuations is inte…
Congratulations!
> Yeah, from what I've heard, SaaS businesses sell for a much higher multiple, often selling as a multiple of revenue rather than earnings.
Adding some color as I have been through the process of selling a SaaS. Based on what you have written, at that stage of development, multiple on SDE is most common. 2.4x is on the low side for growing SaaS businesses, but this business is hardware with real COGS so the economics and buyers will be different. We also don't know the growth rate of the business, which is important in assigning a multiple.
Additionally, full cash payment at closing is a reasonable ask but can lower the overall sale price. (I don't know if it did in this case.)
Again, congratulations in taking this big step on your journey!
Re: I sold TinyPilot, my first successful business
#30Kinda scary the lifetime profit is less than what a sr developer might expect at a big tech firm. I agree this was successful and assume it's rewarding in many other ways! But still...
What's scary about it?