so what’s theladders really worth?
February 21st, 2008
Yesterday’s post brought in a flurry of e-mails and phone calls from people with an opinion and information on TheLadders‘ value. Apparently Hoover’s estimate of $7.4 million for 2007 is too conservative.
So how much is the company really making?
After some investigation, a better guess of annual revenue would be in the $40 million range. Further nosing around reveals the company has been shopping for a buyer for some time now. Probably since mid-2007. So why haven’t they found a sugar daddy?
The reasons are very anecdotal, but apparently the valuation of the business is way out of whack with buyers’ expectations. And the price tag continues to go up as the company continues to have success.
Moreover, potential buyers seem skeptical at the company’s ability to grow to valuation levels due to potential competition and member attrition rates. TheLadders seems confident of the lock-in they have with users, but others apparently aren’t so sure.
February 22nd, 2008 at 1:14 am
The Ladders is [like many sites] a temporary community. This creates a fluctuation in valuation depending on what the term sheet looks like at a specific point in time. They should take whatever they can get and get out…if indeed it is ripe for a return as you describe.
February 22nd, 2008 at 12:16 pm
Time for The Ladders to cash in. Sustainability is a big issue for what they offer and like wine there is a right and a wrong time to pull the cork. They should pull the cork now at an optimum time.
February 22nd, 2008 at 1:22 pm
Oh I dont know….in a stagflated economy or when stock valuations look iffy, T yields are in the 2’s, and demographics point to tight employment, holding a business that generates cash may be better than actually holding cash….. if that is true, valuations will creep upward as fewer good deals are out there. Another factor is that big deals are having funding problems because of credit issues in the leveraged market. Smaller deals like this may be the only kind being done for awhile, which will also push valuations. Contracted medium to long term revenue is worth more, naturally, than short term transactional revenue, but eyeballs are still convertible to $$.