Answered produced feed
D 5 · C 5 · P 5 · Cm 4 4.85
Q like, those little nuances, you know, if you get those right for a specific customer segment, it makes sense. Like that's like a 10 X feature. Yeah, arguably. Um, so that's awesome. Okay, so you found the business, um, you and the founder, um, begin chatting. How did you, how did you get to terms and, um, what did, what did the acquisition kind of play by play look like?
A Yeah. Yeah. So we had a pretty unique deal structure. I would say compared to, I think kind of the standard acquisition that goes on in this, uh, call it like tier or size, whatever. Uh, so originally I think it was listed at 350,000 asking the price. And when I first stepped in, I was hoping to get to that price. I think the numbers just didn't end up working with the multiple on the, on the revenue that we were looking at. Um, and I backpedaled a little bit and then basically brought to David, the original founder, Kind of slightly modified plan of a partial cash, partial equity package. Um, because we have a product that we're bringing to market and we sort of have this longer term vision of providing like the, uh, hiring stack, so to speak to, to companies. I think David bought into that vision and really saw the upside and taking on equity as a, as a component of that acquisition deal.
AI assessment note: “basically brought to David, the original founder, Kind of slightly modified plan”
Answered produced feed
D 5 · C 5 · P 4 · Cm 4 4.60
Q Um, I, I, I, I'd love to dive in on that. Um, what are like, what's like your biggest tip when doing a code review? Cause you know, you're sharing your screen, you know, maybe the seller is only showing you like the good parts. Um, you know, how do you, What would be your best, um, recommendation to make sure, like, you do proper, you know, technical due diligence?
A Yeah, I'll speak to, I'll speak to the engineers out there, right, because I think this is going to be different if you're non-technical buying a business. Um, I think you do need to bring in, uh, some advisor on the technical side to look at this, but for me, uh, the biggest heuristic that I go off of is organization and consistency of structure. Um, so it's really hard if you're just, like, eyeballing, like, Thousands of lines of code over a zoom or whatever it is to figure out if it's quality code. But what you can do really quickly is to see if that the folder structures and the file naming conventions are incredibly consistent and that the original seller can explain that to you, why they organized it in that fashion. Um, there's all sorts of patterns out there and ways to do this. You hear the terms like end here, architecture, MVC, whatever it is. As long as there's consistency within the product so that you know where to go to find a given, uh, file, I think that that's like the number one thing. I think the other big thing is that like they've just kept stuff up to date. Um, big red flags if they're like on versions that are outdated like two, three years ago, and it's very clear they've never updated it. Um, I know I went into diligence with a couple of different products that never ended up closing because you'd get in there and they hadn't touched the thing in two a…
AI assessment note: “the biggest heuristic that I go off of is organization and consistency of structure”
