Home / Methodology
How the valuation is calculated
We start from a base range set by your full-time staff, then multiply it by five factors: years of records, how many kinds of system hold them, how much is in English, who owns the records of client work, and business age. The result is indicative, not an offer, and sits well inside buyers’ published headline ranges.
Every multiplier is 1.0 for a typical profile: 5–10 years of records, three kinds of system, records mostly in English, and the company owning them. Industry does not change the range, because no buyer publishes industry-specific prices, but some industries are not taken on at all (below).
1 Base range by full-time staff
Buyers size their published ranges mostly by head count. Each of our low ends sits at or below the published floor for that size, and each high end at 15–60% of the top of the published band. The anchors are on the price index, each with its source; most are buyers’ claims, not deals.
| Full-time staff | Base low | Base high |
|---|---|---|
| 1–19 | $5k | $20k |
| 20–49 | $10k | $60k |
| 50–99 | $25k | $150k |
| 100–249 | $50k | $300k |
| 250 or more | $100k | $500k |
2 Years of records
A longer history gives a buyer more complete examples of how work gets done: one company’s 13 years of Slack, email and Jira were reported to have sold for “hundreds of thousands” of dollars (see the price index).
| How far back records go | Multiplier |
|---|---|
| Under 1 year | ×0.35 |
| 1–3 years | ×0.65 |
| 3–5 years | ×0.85 |
| 5–10 years | ×1 |
| 10 years or more | ×1.2 |
3 Systems coverage
Buyers build simulated workplaces from many tools together, so breadth matters. The multiplier is 0.7 plus 0.1 for each kind of system that holds records, up to 1.3. Code hosting is one optional kind like the others; a company with no code at all is not marked down for it.
| Kinds of system | Multiplier |
|---|---|
| 1 | ×0.8 |
| 2 | ×0.9 |
| 3 | ×1 |
| 4 | ×1.1 |
| 5 | ×1.2 |
| 6 or more | ×1.3 |
The kinds counted: Email & calendar; Documents & drives; Chat; CRM; Accounting & billing; Projects & ticketing; Call & meeting recordings; Industry systems (ERP, TMS, CAD, property management); Code hosting (optional).
4 English share
This one is our own assumption, not a published price: we have no public price for records mostly in another language, so we discount rather than exclude.
| Language of the records | Multiplier |
|---|---|
| Mostly English | ×1 |
| Mixed | ×0.85 |
| Mostly another language | ×0.6 |
5 Who owns the records of client work
Your own factual answer to “who owns the records of work you do for clients, under your contracts?” It moves the range more than anything else, because buyers generally look for records the company itself owns. We never advise on whether a company may license its records; the buyer and your own lawyer assess that.
| Answer | Multiplier |
|---|---|
| The company owns them | ×1 |
| Mixed | ×0.7 |
| Not sure | ×0.5 |
| Clients own them | ×0.2 |
6 Business age
A company under 3 years old gets ×0.75; buyers usually look for 3 or more years of operating history.
7 Rounding and the cap
Low ends round down and high ends round up, to the nearest $5k under $100k and to $25k above. The high end never exceeds $1M. Some buyers advertise ranges reaching several million dollars, but those headline figures are for the largest and most unusual datasets, not reported deals. With today’s bands the highest possible result is about $800k, so the cap is a guard.
8 Industries we don’t take on
These get no range, never qualify and are never introduced. Their records are mostly other people’s protected information or covered by client privilege. This is our own policy, not legal advice.
- Medical, dental or healthcare. Medical, dental and healthcare records are full of patient information, which is tightly regulated.
- Insurance. Insurance records are mostly policyholders’ and claimants’ personal and financial details, which are tightly regulated.
- Staffing or recruitment agency. A staffing agency’s records are mostly candidates’ and workers’ personal data.
- Title or escrow. Title and escrow files are mostly consumers’ identity and financial details, which are tightly regulated.
- Law firm or legal services. Law firm records are covered by client privilege.
Worked example
An accounting firm with 50–99 full-time staff, 10+ years of records in email, documents, chat, CRM and accounting (five kinds), mostly in English, with mixed ownership of client work: base $25k–$150k × 1.2 × 1.2 × 1 × 0.7 × 1 = ×1.008, so $25k to $175k.
Indicative, not an offer. Buyers set their own price after their own review, and many companies get no offer. The same code runs in your browser and on our server; the server recomputes the range from your answers and never trusts a range sent by the browser.