[antr]

This is the classic example of the seller mixing price (cost) with value.

You are totally right when you say "There's even more ways to spend $125k to make $18k/year" - there are plenty of corporate bonds paying a yield of 10% vs Cheddar's gross yield of 14%.

Subtract from that 14% your time, additional investment to grow user base, taxes and salary; your are left with nothing and $125k less in the bank.

Good luck to the seller, but it's a tough sale.