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by cylinder 2644 days ago
Why didn't you have any representation, such as legal or a deal negotiator, on your side? Broker isn't your friend. Is there any reason why you saw 2x "earnings" as the golden ticket?
2 comments

Not the OP, but I would consider 2x earnings as a reasonable discount given the youth of the company. Given a normal customer acquisition curve, most of the revenue would be coming from customers with tenure < 1 year. So a buyer could reasonably wonder how long these customers would stick around. Put another way: the LTV hadn't been demonstrated yet.

(No scare quotes needed around earnings; the article doesn't suggest that there was any reason the owner couldn't just pocket the monthly earnings.)

I made a much bigger exit and didn't have legal representation either. It's completely overrated.