Comments on: DropSend acquisition talks fall through with YouSendIt http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/ Tue, 16 Mar 2010 08:11:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Tom Gallagher http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-334 Tom Gallagher Fri, 16 Feb 2007 16:09:38 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-334 I find this a particularly interesting read as I created a simelar system a few years ago and I know just how tough the market you are in really is. Hang in there... You have a superior product and above all, a good and fair working ethic. As a result I am sure that the right purchaser will appear in due course. Many thanks for the insightful details of the transaction. I find this a particularly interesting read as I created a simelar system a few years ago and I know just how tough the market you are in really is.

Hang in there… You have a superior product and above all, a good and fair working ethic. As a result I am sure that the right purchaser will appear in due course.

Many thanks for the insightful details of the transaction.

]]> By: Danny de Wit http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-333 Danny de Wit Mon, 08 Jan 2007 17:29:07 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-333 Hi Ryan, Interesting read, this site. You mention the value of quality statistics. What do you use for that? Server statistics, like AW Stats, or Google Analytics? Or something else completely. Thanks! Danny Hi Ryan,

Interesting read, this site.

You mention the value of quality statistics.

What do you use for that? Server statistics, like AW Stats, or Google Analytics? Or something else completely.

Thanks!
Danny

]]> By: When Fake Money is Greater Than Real Money » Wisdump http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-332 When Fake Money is Greater Than Real Money » Wisdump Thu, 04 Jan 2007 17:23:14 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-332 [...] In an interesting post last month, Ryan tells the story of a failed acquisition bid. If you are interested in business at all I suggest you give it a read. As you can see DropSend is in the black so it makes sense for it to draw some interest. The failed acquisition involved a competitor who wanted to use the service as a marketing ploy, but didn’t feel that the $1M asking price was worth it. Ryan doesn’t mention whether there were any negotiations for a lower price, but I am intrigued as to why a service that makes money can’t find a buyer and sites that have no revenue or are deep in the red get scooped up all the time. [...] [...] In an interesting post last month, Ryan tells the story of a failed acquisition bid. If you are interested in business at all I suggest you give it a read. As you can see DropSend is in the black so it makes sense for it to draw some interest. The failed acquisition involved a competitor who wanted to use the service as a marketing ploy, but didn’t feel that the $1M asking price was worth it. Ryan doesn’t mention whether there were any negotiations for a lower price, but I am intrigued as to why a service that makes money can’t find a buyer and sites that have no revenue or are deep in the red get scooped up all the time. [...]

]]> By: K http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-331 K Thu, 04 Jan 2007 16:54:56 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-331 Well, if what you said about the cost is true, then you are really in a serious business when you could bring in $20k per month. You shouldn't regret for missing this opportunity to sell DropSend. What's next? Take on YouSendIt now!!! Well, if what you said about the cost is true, then you are really in a serious business when you could bring in $20k per month.

You shouldn’t regret for missing this opportunity to sell DropSend.

What’s next?

Take on YouSendIt now!!!

]]> By: Ryan Carson http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-330 Ryan Carson Thu, 04 Jan 2007 14:32:57 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-330 <blockquote>I guess there was no NDA?</blockquote> Nope.

I guess there was no NDA?

Nope.

]]> By: Jason M. Lemkin http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-329 Jason M. Lemkin Wed, 03 Jan 2007 23:27:43 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-329 I guess there was no NDA? I guess there was no NDA?

]]> By: Ryan Carson http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-328 Ryan Carson Wed, 03 Jan 2007 21:21:20 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-328 Thanks everyone for the kind feedback. If anything, we've learned a ton from the experience. I still believe it would've been a wise investment for YouSendIt - but that's obviously their call. We're on target for bringing in $20,000+ per month by Nov 2007, so if we start putting a bit more time and effort into marketing, I believe we could start to see some serious revenue. Only time will tell! :) Thanks everyone for the kind feedback. If anything, we’ve learned a ton from the experience. I still believe it would’ve been a wise investment for YouSendIt – but that’s obviously their call.

We’re on target for bringing in $20,000+ per month by Nov 2007, so if we start putting a bit more time and effort into marketing, I believe we could start to see some serious revenue. Only time will tell! :)

]]> By: denis http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-327 denis Wed, 03 Jan 2007 19:53:53 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-327 The way I see this whole story is very positive; selling for only 1m$ would have been an error, in my opinion, since it's common to see unestablished businesses (who only have a business plan) with valuations around 1m$. Remember there's not much left after taxes, accounting and layers. Keep working hard and next time, ask for 10-15m. After all, didn't they (Yousendit) received 5m in funding, for a similar service? The way I see this whole story is very positive; selling for only 1m$ would have been an error, in my opinion, since it’s common to see unestablished businesses (who only have a business plan) with valuations around 1m$.
Remember there’s not much left after taxes, accounting and layers. Keep working hard and next time, ask for 10-15m. After all, didn’t they (Yousendit) received 5m in funding, for a similar service?

]]> By: k http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-326 k Wed, 03 Jan 2007 19:44:48 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-326 If I were a venture capitalist, I would invest that $1m in this company. Half to Carson (retain 50% share) and the other half to invest in the company, make a big marketing push. Make it big enough to attract other big players and try to get a valuation of $8-10m. It would make a healthy return of 6-8 times within 12 months. If I were a venture capitalist, I would invest that $1m in this company. Half to Carson (retain 50% share) and the other half to invest in the company, make a big marketing push. Make it big enough to attract other big players and try to get a valuation of $8-10m.

It would make a healthy return of 6-8 times within 12 months.

]]> By: Andrew http://carsonified.com/blog/carsonified/dropsend-sale/dropsend-acquisition-talks-fall-through-with-yousendit/#comment-325 Andrew Wed, 03 Jan 2007 19:15:24 +0000 http://carsonified.com/misc/dropsend-acquisition-talks-fall-through-with-yousendit#comment-325 I find this blog & the other one BNA very interesting to read. This story is a great read. Sorry to hear that the sale fell thru, but to be honest I find it hard to fathom how a valuation of $1m was reached. The number of clients & revenue is tiny. I was suprised that the number was so low. Dropsend is a great app - I've used it many times, although I've never paid for it. I think the free plan is just too wide in features. I would pay a few $ for that type of service but have never needed to upgrade. Sure those very low $ plans don't have much revenue, but x 10,000 - it adds up. I find this blog & the other one BNA very interesting to read.

This story is a great read. Sorry to hear that the sale fell thru, but to be honest I find it hard to fathom how a valuation of $1m was reached. The number of clients & revenue is tiny. I was suprised that the number was so low.

Dropsend is a great app – I’ve used it many times, although I’ve never paid for it. I think the free plan is just too wide in features. I would pay a few $ for that type of service but have never needed to upgrade. Sure those very low $ plans don’t have much revenue, but x 10,000 – it adds up.

]]>