New ask Hacker News story: Ask HN: Advice on choosing an M&A firm for a company with ~1M earnings
Ask HN: Advice on choosing an M&A firm for a company with ~1M earnings
3 by throwawaymna | 0 comments on Hacker News.
Hi HN, I own a privately held, web-based business with revenue in the low millions and around 1M EBITDA. We've seen strong growth over the past few years, but are currently on somewhat of a plateau. Future prospects look decent though, so I expect we will remain comfortably profitable, and I could see outcomes over the next 1-2 years anywhere from flat or slight decline up to perhaps 50% growth. Having run this company for a number of years now, I am starting to consider an exit. I'm not in any particular hurry, but am at least starting to think about what our valuation might be. Since the company was entirely bootstrapped, I don't have any real experience working with VCs or M&A firms. I know if I was looking to sell I would want representation that understands the market, but beyond that, I'm interested in advice on how to choose a good mid market M&A firm. I've seen it recommended not to go with firms that charge an up-front fee, because incentives are more aligned if the firm only earns when a sale is done. That makes sense to me, but I don't know how common the various cost structures are, so how feasible that is. Any info on that, as well as industry standard rates/ranges in general would be helpful. Plus any other advice. Most of what you find online is put out there by the firms themselves, who of course have an interest in focusing on their various strengths. Input from people who have sold companies around this size would be invaluable. Thanks!
3 by throwawaymna | 0 comments on Hacker News.
Hi HN, I own a privately held, web-based business with revenue in the low millions and around 1M EBITDA. We've seen strong growth over the past few years, but are currently on somewhat of a plateau. Future prospects look decent though, so I expect we will remain comfortably profitable, and I could see outcomes over the next 1-2 years anywhere from flat or slight decline up to perhaps 50% growth. Having run this company for a number of years now, I am starting to consider an exit. I'm not in any particular hurry, but am at least starting to think about what our valuation might be. Since the company was entirely bootstrapped, I don't have any real experience working with VCs or M&A firms. I know if I was looking to sell I would want representation that understands the market, but beyond that, I'm interested in advice on how to choose a good mid market M&A firm. I've seen it recommended not to go with firms that charge an up-front fee, because incentives are more aligned if the firm only earns when a sale is done. That makes sense to me, but I don't know how common the various cost structures are, so how feasible that is. Any info on that, as well as industry standard rates/ranges in general would be helpful. Plus any other advice. Most of what you find online is put out there by the firms themselves, who of course have an interest in focusing on their various strengths. Input from people who have sold companies around this size would be invaluable. Thanks!
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