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Comment on I Merged My One-Person Software Company with a Bigger Player (2018)parent

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The company in the article appears to be more of a software company & less of a service company. From the conversations I've had, I would expect to see a valuation in the range of 2-5x the company's earnings.

(The term of art is SDE/Seller's Discretionary Earnings, and is basically the sum of all the money the owners are able to take out of the business, including paychecks and bonuses.)

FEI and other brokers write a bunch about valuing small businesses: https://feinternational.com/blog/how-do-you-value-an-online-...

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