Re:YC Help: I need Acquisition Advice
by brk on Wednesday March 05, 2008 @09:38PM
(#130232)
Like most everything else, "it depends".
Do you have revenue? What the COA vs. TLV for each customer? What's the market? What's the growth potential? Do you have a better than average chance of success if you make a go of it on your own? Do you potentially have blocking patents that this other company might need? Could you get funding on your own?
(Yes, I know you answered some of these questions above)
3-4 times is nothing spectacular, really. 10x is usually getting in the range of very good, but there is no static multiple that applies universally.
Do you have revenue? What the COA vs. TLV for each customer? What's the market? What's the growth potential? Do you have a better than average chance of success if you make a go of it on your own? Do you potentially have blocking patents that this other company might need? Could you get funding on your own?
(Yes, I know you answered some of these questions above)
3-4 times is nothing spectacular, really. 10x is usually getting in the range of very good, but there is no static multiple that applies universally.