As you may know, we acquired Clarity recently and have done numerous acquisitions at Startups.co so we spend a lot of time thinking about this. I've also personally been acquired a few times so I've been on both sides. With that said I think the earlier comment about how much value you can brin...
We normalize the income statement, compare with other frozen food companies that have been sold, then make an operating capital adjustment based on the type of sale foreseen. It all comes down to cash flow. (assuming you're making money) If you'd like to discuss this particular case just arrang...
Good question. 6% churn per month on $5M is $300,000. Seems like a lot of money to me without even knowing your cost of customer acquisition. It's like trying to fill a leaking bucket. A little uptick in churn rate will have a HUGE NEGATIVE impact on your valuation: you reduce your LTV and ARPA w...
The answer really depends on many factors. You are correct that many SaaS companies valuation falls into the range of 3 to 9 times revenue. I would say that companies that have a very high net income % (25%+) would fall more to the range of 7x-9x and companies that are closer to breakeven or lo...
First define "successful" and make sure others would see it as the same. If growth is stagnating, that's not what success looks like in an app. The only way you have a chance at selling it at anything above "fire sale prices" is you can say that you have enough actively engaged users, which i...
If you want to find it yourself, Pratt's Stats would be the place to start. But more than likely you want to talk to a valuation expert that's done hundreds of them. I've done that for hundreds of agencies, but never for your tyoe of firm. If your firm is small, you must normalize your compensat...
I can tell you that this proposed structure will significantly reduce NewCo's ability to raise additional capital. The idea too that the startup's valuation can jump from less than $200,000 to $10m just through the creation of an MVP in a relatively short period of time is also unrealistic. If ...
There are three questions here: - the strike price of the options - the market value of the company - how much those options are actually worth to the recipient 1. The strike price is the price people pay to exchange their options for shares. You can set any strike price you like: it's just a n...
Its really tough to mention the best. I have a long list of US/UK based M&A, PE and VC firms list with direct contact information of key personnel. If you are interested, I can send them over to you for quick research. Thanks