Why I Walked Away from a $12M Acquisition Offer 18 Months After Our Launch | Hacker News Reader

Why I Walked Away from a $12M Acquisition Offer 18 Months After Our Launch

groovehq.com

11 pointsrmason6 comments

Feel free to correct my math here:

50% share of business after tax take: 6,000,000x0.7 = 4,200,000 Being extremely conservative and investing in LQD: 4,200,000x3.13%/12 ~ $11,000

Would you walk away from a check for $11,000/month forever?

> Would you walk away from a check for $11,000/month forever?

Nope, I wouldn't. Like he said in the article:

  First-time founders care most about their exit. Every time after that, you focus on legacy.

With cash problems forever off the table, it'd be much easier for me to start more businesses... :)

(Tellingly, author Alex Turnbull's first business was also acquired, by Constant Contact.)

Deleted comment

Multiples are done on annual revenue.

70k/month * 12 months = 840K. 840K * 14 =~ 11.8M

A bird in hand is worth two in the bush.