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Re:My Sixth Year as a Bootstrapped Founder by hn_throwaway_99 on Friday February 16, 2024 @03:32PM (#39402572)
Thanks for posting this. I was also misinformed, thinking 7/15x was reasonable, but for small businesses valued primarily on cashflow, looks like 3x is more accurate (of course, growth affects that number a lot).

I thought this had a lot of good data: https://www.bizbuysell.com/learning-center/industry-valuatio.... For "Software and App Companies", the multiple was 3.17.

Re:My Sixth Year as a Bootstrapped Founder by hinkley on Friday February 16, 2024 @05:03PM (#39403545)
Payback period I assume. 3 years at 3x if revenue is flat. I suspect 3.17 is around 30 months if your revenue growth outpaces inflation.