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If they are generating $20m/yr in revenue doesn't a $20m purchase seem a bit low? How did they agree on $20m?
by cicero19 14y ago
If they are generating $20m/yr in revenue doesn't a $20m purchase seem a bit low? How did they agree on $20m?
- ceejayoz 14y agoPresumably, that $20m/yr in revenue comes with a decent chunk of costs too.
- ebrescia 14y agoAccording to TechCrunch, they are on track to do $5 MM in EBITDA, so they have about $15 MM in annual operating costs (before interest, tax, depreciation and amortization). This means that Dice paid about 4x operating profits. Here's the link: http://techcrunch.com/2012/09/18/dice-holdings-buys-slashdot-sourceforge-and-freecode-from-geeknet/ http://techcrunch.com/2012/09/18/dice-holdings-buys-slashdot...
- bduerst 14y ago$20m is the price you would expect. Rule of thumb is 3 years earnings + a little extra for goodwill/brand name/human capital.