Einar Volsett

my real time is like seven or eight times revenue.

Like more than that is sometimes.

But, um, and again, it depends on the size of the company, uh, and sort of how profitable they are obviously.

But, but that's sort of the upper limit.

In some cases you get 10, 11, something like that.

But above that it's almost always strategic.

Now the difference.

So, so the question then becomes like why does the strategic pay 30 X when the ceiling for, uh, like a financial sponsor is like say 10.

So it goes like, no, no, no.

It's like, usually my rule of thumb for the size companies I do is like, depending on growth.

So, you know, it's like, if you're doing, um,

Obviously, doing north of a million ARR, ideally north of 2 million ARR, if you're growing 0% to 20%, then what is an easy multiple to get, I think, is about 3x.

And then from 20% up to about 50%, you can probably get 4x, maybe 5.

From 50% to about 100% growth, this is annual growth, you can get anywhere from 5 to 7 times.

And so the value buyers are the ones looking to pay.

Usually, they're hoping to pay 1x, but those days are over.

I think they're usually looking to pay two to four times revenue.

And then above that, you really get into the growth club.

The people are willing to pay anywhere from four to seven times, seven, eight, maybe nine, sometimes 10, depending on the size of the company and the profitability.

And then above that, it's all strategics, usually.