We paid $128k, which was asking, and 3.5x seller discretionary earnings (basically revenue minus expenses, where expenses don't include any money the seller chooses to take out like his salary or healthcare, etc). Our opening offer was 2.8x SDE. We came up because we looked at our alternatives to buying it and they were unpalatable - we really liked Codetree because it ticked a lot of the boxes for us.

Transactions of this size typically go for between 2.5-4x SDE.

Fees, if any, were paid by the seller.

I think that answers my question, thanks... Sounds like pretty straight forward maths for the most part :)

As the seller, I paid a fee to FE International (my broker). Similar to having a realtor help sell your house, it was absolutely worth it. FEI compile a prospectus, distributed it to their network of buyers, advised on selling price, sat in on calls with potential buyers to keep the conversation on point, and overall helped me maintain my sanity.

Whilst I'm also interested in the actual numbers :) I'm also interested to learn how you came about an evaluation.

Was it based on user count, current revenue, growth potential, etc?

Thanks.