@SteveMcLeod Thanks for this episode. Really interesting. I’m a bit puzzled about your valuation of sabrefeedback.
If I understand correctly, the purchase price was about:
purchase price = (MRR - hosting etc.) * 36
I think this is a fair valuation for a SaaS which one bootstrapper runs.
However in the podcast, you mention that you won’t do much work, and let other people handle most work on sabrefeedback. that means you have to pay these other people.
So, in my mind, the valuation for you looks different than the above one:
purchase price = (MRR - hosting etc. - people cost) * X
X unknown (at least for us). This
X will be much larger than 36.
Given that there is reasonable MRR, the cash flow looks like no problem, but I was wondering about the time frame you have to “earn back” the principal.
The issue I try to raise is that the valuation of a business can be substantially different, depending on how you look at it.