111–120 of 125 posts
Shows how out of touch I am with the corporate world. I can't believe people pay monthly for this.
I know right. Big thanks to patio11 for convincing me (via blog posts and tweets) that, yes, many businesses will pay quite a bit more than you think for things like a store locator
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... and what revenue multiple do you pay?
> ... and what revenue multiple do you pay? I'm trying to figure out if you're just being a jerk here, or whether you are genuinely curious about a question with a wide range of acceptable answers. I hope it's the latter. Market rates are typically something between 2x and 5x some sort of revenue or profit measure. That said, the price can go over 5 if there is a big strategic advantage to be had. Conversely, the mul…
Sorry, but which is it? 2X to 5X revenue and 2X to 5X profit are wildly different numbers.
Developed during a single flight? It shows. So the real question is, why the $$$$$ valuation?!
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In my experience, hiring a marketing/adwords contractor is the very easiest way to transfer cash out of your business and into somebody else's business, with no discernible value gained. I'm sure there are some hotshot marketing/adwords contractors out there...and unicorns probably exist also.
As someone who manages digital media for a living and has done so with very large sums of money with measurable revenue attached to that spend, I'd invite you to share what makes your experience so concrete as to enable you to attempt to discredit an entire industry with a wave of your hand. I'll be the first to say that measuring the incremental impact of advertising is often very challenging for a variety of techni…
Shows how out of touch I am with the corporate world. I can't believe people pay monthly for this.
I work for a medium-sized business in an out-of-touch (technologically speaking) industry. You would not believe the shit we pay for. Were our company in need of a way to cross the street, we would almost certainly look for a vendor supported crosswalk, plus consultants to guide us through crossing the street the first few times, and training for our designated crosswalk guard. And I'm not even convinced they're doin…
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> ... and what revenue multiple do you pay? I'm trying to figure out if you're just being a jerk here, or whether you are genuinely curious about a question with a wide range of acceptable answers. I hope it's the latter. Market rates are typically something between 2x and 5x some sort of revenue or profit measure. That said, the price can go over 5 if there is a big strategic advantage to be had. Conversely, the mul…
> between 2x and 5x some sort of revenue or profit measure Sorry, but which is it? 2X to 5X revenue and 2X to 5X profit are wildly different numbers.
My point was precisely that the market bears wildly different values.
As mentioned elsewhere, 3-3.5x of SDE is reasonable for a well-documented solid SaaS. If you read the article, even that can vary.
Hi folks. I'm the OP here. Hit me up if you have any questions.
Would this work for a business that requires domain expertise? I run an online lsat prep business. I sell video courses. Not a monthly SASS, but everything runs automatically. Students arrive at predictable times of the year and buy in predictable quantities. But, to expand on it, you would need domain knowledge. That can be hired; I have an assistant who’s an lsat tutor who handles a lot of support. There aren’t rea…
Most business owners are business owners because they enjoy the returns of the asset, not because they are themselves experts at every facet of maximizing those returns. Expertise can be bought; that is a major part of their responsibility. (When I expressed surprise at the existence of non-technical SaaS buyers someone reminded me that there are people who could not cook a burger who nonetheless buy McDonalds franchises.)
There’s also the issue that my personality is in the business. The videos feature me, and the informational materials are written in my own style, using the word “I”, etc.
This isn't ideal but isn't insurmountable. Is your personality in the business or is it the business? People have sold very personal brands before, but it's tricky to arrange at the lower end of the scale. To the extent that you appear in a video, well, someone has to appear in the video, and "founder" remains true regarding you even if it is an entirely emeritus position. Informational materials being written in your style is not a problem; style is one of the things they're buying, and they can either continue consciously adopting it or adjust to the styles of the people doing writing when you aren't, at their option.
For a more detailed opinion, chat up a broker; they'll be happy to tell you their opinion of whether going through the process is worth your time.
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I know right. Big thanks to patio11 for convincing me (via blog posts and tweets) that, yes, many businesses will pay quite a bit more than you think for things like a store locator
Thanks! That made my day. (I would have liked it regardless of the context but particularly nice to hear in the context of helping a business to a materially successful outcome.)
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> ... and what revenue multiple do you pay? I'm trying to figure out if you're just being a jerk here, or whether you are genuinely curious about a question with a wide range of acceptable answers. I hope it's the latter. Market rates are typically something between 2x and 5x some sort of revenue or profit measure. That said, the price can go over 5 if there is a big strategic advantage to be had. Conversely, the mul…
No I am asking a genuine question. My experience is all buyers want to pay 1x to 1.5x of the after tax profit after some massive owner salary has been subtracted. From a financial perspective it almost never makes sense to sell unless you have to get out today. If you have a good business that is earning good money then just run it out for cash. At worst take your best employee, give them 10% of the business, and let…
I've done it twice. FEI (the broker I used, linked by others) was very effective at bouncing people with very unreasonable expectations of market prices; I felt like my time was not wasted with non-serious parties (relative to my prior expectations of how many there would be).
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No I am asking a genuine question. My experience is all buyers want to pay 1x to 1.5x of the after tax profit after some massive owner salary has been subtracted. From a financial perspective it almost never makes sense to sell unless you have to get out today. If you have a good business that is earning good money then just run it out for cash. At worst take your best employee, give them 10% of the business, and let…
This hasn't been my experience at all - I'm sorry you haven't had better offers. If you haven't already, I suggest contacting the brokers mentioned on this page (FE International, Pixel Paycheques) and see if they can get you better deals