Why large companies acquire small companies
A Smart Bear: Startups and Marketing for Geeks
MARCH 21, 2017
Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.
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