Acquisition Questions


2 Votes
2 Answers
935 Views
Buying a website on Flippa using someone else's capital?

I'm looking to buy a website on Flippa that is likely going to sell for $200K+.I don't have the resources to buy this website with my own money. What other ways can I "fund" buying this website?Is...

asked Aug 4 '14 at 20:41
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Noah Bruggeman
14 points

1 Votes
1 Answers
858 Views
Early stage startup acqui-hire: will it hurt being able to raise funding in future?

If an early stage startup, that has raised a seed round from angels, decided to get acqui-hired by another company. Will that hurt the founders' ability to raise money for a future venture?In an...


2 Votes
3 Answers
796 Views
Buying sites on Flippa: what key metrics should I know?

When buying websites on Flippa, what is the key information I should do due diligence on?Also, isn't it possible to fake Google Analytics traffic fairly easily? Not just by modifying a screenshot,...

asked Apr 13 '14 at 13:11
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Kelly Harden
11 points

3 Votes
1 Answers
743 Views
How to approach a troubled website in order to buy them?

What's the best strategy on approaching a website that is shutting down due to profitability issues and try to buy them? I was an avid reader of AppStorm for several years.They recently announced...

asked May 19 '14 at 20:57
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Roy Favorite
17 points

2 Votes
1 Answers
533 Views
If Beats was making $1.1B in revenue, why did they accept Apple's offer of less than 3x revenue?

Seeing how tech companies values at high multiples, why does it make sense for Beats to sell to Apple for less than 3x their yearly revenue?

asked Jun 2 '14 at 14:25
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John
11 points

1 Votes
0 Answers
643 Views
Cash vs stock when getting acquired? What are the pros and cons of each?

What are the pros/cons of selling your startup for cash vs stock in the acquirer company?Some acquirers try to balance the price with it split between cash and stock.

asked May 30 '14 at 18:27
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Justin Holub
7 points

2 Votes
1 Answers
635 Views
Closing the sale of a small business without a lawyer?

I have a small ecommerce store which generates a profit ($200K to $300K a year) that someone would like to purchase. The value of the deal isn't huge, it's just 1.5x the yearly multiple. As such,...

asked May 29 '14 at 16:30
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Zachary Masten
12 points

1 Votes
1 Answers
486 Views
How do VCs get their troubled startups "acqui-hired"?

A good chunk of startups funded by top-tier VCs get "acqui-hired" rather than closed if it's clear they won't succeed.How do VCs get these "acqui-hires" done and avoid a complete loss? Is having...

asked Mar 27 '14 at 19:26
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Richard Albury
7 points

1 Votes
0 Answers
446 Views
How long are founders asked to stay employed at parent company after an acquisition?

What is the industry average time co-founders are asked to stay onboard after an acquisition. I see that most acquires would require a length of stay in their acquisition contracts.Also, is it...

asked May 16 '14 at 18:27
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John Dunn
9 points

1 Votes
1 Answers
799 Views
Company interested in acquiring our startup. How do we calculate a valuation?

We are a bootstrapped company of three. Our primary competitor is interested in acquiring us (acqui-hire). How do we place a value on our startup? Since we don't have any revenues or a huge user...


3 Votes
2 Answers
885 Views
Ways to reduce customer acquisition costs?

What are some strategies and tips to reduce customer acquisition costs? Lets assume you have found that SEO, PPC, display ads, and lead generation are the four channels that work best for you. How...

asked May 13 '14 at 14:41
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Heather Thomas
19 points

1 Votes
0 Answers
389 Views
How to decide between acquisition offers?

If you have multiple acquisition offers, how do you decide among them? Should it purely be based on who is offering the highest price? Or should other factors be considered as well, such as which...

asked Apr 17 '14 at 00:40
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Maria Delarosa
7 points

2 Votes
1 Answers
631 Views
Barely 6 months old startup: how to deal with acquisition offers?

How would you deal with small acquisition offers for a 6-month old startup? We don't have any investors since we bootstrapped the business, so that isn't an issue.The offers are large enough that...

asked Apr 3 '14 at 17:12
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Ashley Allen
12 points

0 Votes
1 Answers
656 Views
How are early stage startups valued during acquisition?

For angel funded early stage startups, how would an acquirer base their valuation? It's trivial since most metrics of startups at this stage doesn't reflect their potential value.

asked Apr 2 '14 at 10:57
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Robert Irving
2 points

8 Votes
6 Answers
1.86K Views
Got an offer for my app. Should I sell?

I have a free trivia app that I launched about three years ago, which generates about $90K in revenue each year. My costs are very little and most of it is profit. The only real cost is my time to...

asked Mar 29 '14 at 01:10
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User32788
74 points

0 Votes
1 Answers
541 Views
What happens to employee stock options if they're vested 3 years (1 year left) and get acquired by another company?

Considering the following scenario: 4 year vesting schedule Employees have been working for 3 years (so 3 years vested and 1 remaining) So 25% of their equity is remaining to be vested What would...

asked Mar 25 '14 at 01:43
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Charles Wright
40 points

1 Votes
0 Answers
343 Views
How to sell a service based business?

How would one go about selling a service based business where you are the core asset? For example: a medical practice, or a mobile development consultancy?

asked Mar 15 '14 at 18:05
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Selena Rael
55 points

0 Votes
2 Answers
804 Views
Selling business: is it legal for competitors to pose as potential buyers to gain insight?

I'm looking to sell a website and wondering if it's legal for a competitor to pose as a buyer to get detailed insight of how my business operates?i.e. If they have no intention of buying the...

asked Mar 11 '14 at 10:10
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Richard Clark
110 points

0 Votes
1 Answers
596 Views
Cost to acquire Medium.com domain name?

How much it cost for Medium.com to acquire their domain name?Is buying and reselling domain names a viable business nowadays? Or is the "gold rush" already over.

asked Mar 10 '14 at 09:01
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Dave Goodwyn
20 points

2 Votes
1 Answers
377 Views
Valuing a SaaS startup which has a large number of free members (and no paid plan yet for monetization)?

I'm going to helping a friend try and sell a service of his which is completely free to users. It's a social media tool similar to ManageFlitter.He has a large number of active users. The service...

asked Mar 5 '14 at 17:27
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Violet Phillips
155 points