
Ask HN: Selling a software start-up - lonely_coder
As advised on Proggit, I'm posting my question here.<p>I'm considering a selling a small software company in order to be able to concentrate on other ventures. Currently, it's taking up all my time and I've got some other ideas that I want to work on. The company has been profitable since day one (it's been around for almost 1 year) and yearly revenue is the upper 5 figure range (the only real cost is a VPS).<p>I'm still not decided whether I want to go ahead with it but if I do, how would I go about finding a buyer?<p>Thanks.
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alain94040
You have two options you can follow:

1) your company is profitable, it may interest pretty much any independent
person to pick it up, grow it a little bit and see what they can do with it.
Sales price would be 1X-2X annual profits

2) your product has a strong synergy with a bigger company's products. You can
target a strategic sale to them.

Approach #2 will yield a higher price, but could take you 6 months or more to
close a deal. Approach 1 will not be as lucrative, but probably can be done
quickly.

All of this assumes your financials are clean, there are no hidden costs or
liabilities.

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gtani
<http://news.ycombinator.com/item?id=164512>

<http://news.ycombinator.com/item?id=200531>

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ErrantX
Well one of your biggest audiences might well be here or even Proggit (not
sure of their TOC's for things like that).

