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Part of a startup is the (hopeful) sale in the end.

Corporations often buy companies for revenue, but would you rather have a company with stronger revenue or net profit?

For example: is a company with $10 million revenue and $5 million profit worth more than a company with $7 million profit and $6 million revenue?

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"What is most important ..." : the ability to negotiate. – frenchie Feb 7 at 2:59
Please see answers.onstartups.com/faq#dontask . You can consider revising the question, if possible. – Jesper Mortensen Feb 7 at 15:37
I consider this to be an answerable question. There are prevailing valuation mechanisms. – AndrettiMilas Feb 7 at 16:53

closed as not constructive by Jesper Mortensen Feb 7 at 15:37

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1 Answer

The 1 times revenue is just a simplistic rule of thumb.

The answer is really about time, especially the future. That is, the valuation today will depend partly on history, partly on the present situation, but mostly upon the future prospects for growth, revenue and market development and dominance.

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