Does anyone have any idea how much his business would be sold for? He described it as a "life-changing amount of money". If he was doing around 50k in MRR at the time he sold, what would his valuation look like?
Around 2.4 million - possibly higher depending on the mechanics and industry of the actual business
Typically it’s ARR x 4
I’ve not seen multiples that high selling two companies. The multiple depends heavily on the growth rate. If you’re growing at 25% YoY — unless you’re in a hot market — it’s probably closer to 2x revenue.
Average is 3x LTM revenue or last year for seasonal business.