On: YC Help: I need Acquisition Advice

[dfranke]

That sounds like a very low offer. A 4:1 P/E ratio is what you expect from a steel company, not a tech startup showing exponential growth.

[jorgeortiz85 → dfranke]

Right. If your growth really is exponential, then drag out the deal a month or two, at which point their valuation is so outdated they have to make a new one.

[mrtron → jorgeortiz85]

At which point you are still getting a crappy multiple?

If your growth is really exponential...that should be an additional 10x multiple. So, 30-40x multiple overall.

[DavidSJ → dfranke]

Actually, a steel company gets about 15: http://finance.google.com/finance?q=NYSE:X

Established high-tech companies like Google or Apple get 25-35 if good growth is expected.

They're trying to rape you.