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A comment on YC Help: I need Acquisition Advice.

Re:YC Help: I need Acquisition Advice by dfranke on Wednesday March 05, 2008 @09:36PM (#130231)
That sounds like a very low offer. A 4:1 P/E ratio is what you expect from a steel company, not a tech startup showing exponential growth.
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Re:YC Help: I need Acquisition Advice by jorgeortiz85 on Thursday March 06, 2008 @12:35AM (#130346)
Right. If your growth really is exponential, then drag out the deal a month or two, at which point their valuation is so outdated they have to make a new one.
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Re:YC Help: I need Acquisition Advice by mrtron on Thursday March 06, 2008 @09:27AM (#130555)
At which point you are still getting a crappy multiple?

If your growth is really exponential...that should be an additional 10x multiple. So, 30-40x multiple overall.

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Re:YC Help: I need Acquisition Advice by DavidSJ on Thursday March 06, 2008 @11:49PM (#131060)
Actually, a steel company gets about 15: http://finance.google.com/finance?q=NYSE:X

Established high-tech companies like Google or Apple get 25-35 if good growth is expected.

They're trying to rape you.

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