Hacker News Reader

Comment by jacquesm | Hacker News Reader

Find a couple of your competitors and set up a bidding process, that is probably the best way to get the maximum out of a company like that. Aim for 10 years net or so, and be sure to stipulate that you reserve the right to refuse all offers.

I've written up a HN thread about this subject a long time ago:

https://jacquesmattheij.com/how-to-sell-your-company

View on HN

When you say aim for 10 years net: if the company nets $100k/yr, you think it'd be reasonable to ask for a $1M sale?

Where does this 10x multiplier come from? I thought the prevailing multiplier (for small SaaS) was 3x net.

multiple is highly dependent on the growth rate, and makes no sense to talk about it without knowing how fast the company is growing. $100k/year growing 100% is very different than growing 10%.

If it was growing 100% per year do you think the ggp would be interested in selling?

From experience this is what you should be able to get if you negotiate hard and have more than one interested party at the table. If you can find only one taker and they are aware of it you will see a much lower value.

Also: for less than 10x net, if is growing steadily just hold on to it for a little while longer, but do continue to talk to interested parties, you will meet your goal sooner or later. Patience is the big secret to successful negotiation.

From one M&A advisor to another - this is good advice.

Reply on news.ycombinator.com