I Merged My One-Person Software Company with a Bigger Player (2018)

Re:I Merged My One-Person Software Company with a Bigger Pla... by brianwawok on Monday April 29, 2019 @02:48PM (#19781360)

It assumes a lot of costs are fixed, and do not scale with income. Software is weird like that.

Double the 500k R / 250k P company without more expenses, and you now have 1 M R / 750k P. Double the 1M R / 100k P and you now have 2 M R / 1.1 M P.

Especially if a firm can come in and do a round of layoffs (Replace support with outsourced, fire marketing, replace devs with outsourced).. it would be pretty easy to get the margin really really high for a few years, which is all they may be looking for.

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Re:I Merged My One-Person Software Company with a Bigger Pla... by robocat on Monday April 29, 2019 @04:07PM (#19782118)

Also maybe, some forms of financing are based on revenue, and just care that there is enough profit to cover the interest e.g. https://en.m.wikipedia.org/wiki/Revenue-based_financing

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