“This is an Internet business, son. You can’t buy it for peanuts,” said the grizzled investor who had used some of his profits from commercial real estate to buy into the burgeoning New Age business just a couple of years earlier.
“I understand. You’ve got a great enterprise,” said Jim Shumadine, Trader’s new ventures director. “It would be a tremendous acquisition for us. But you’ve been losing money for years, and your revenues are still percolating at about $2 million. I’d be misleading you if I suggested we’d value it for anything north of $5 million.”
“Five million! Are you nuts? I’ve probably invested $8.5 million, and I expect to make my money back. It’s worth at least $10 million—probably a lot more!”
“I understand. ...