"Mr. Morgentaler, 20 million dollars it is then, just like you've priced it." Dean didn't haggle anymore, as it was pointless, since it was only the first round of valuation.
In Dean's original expectations, the bottom line for Byte Software's valuation was around 12 million dollars, roughly ten times the profit of the Teams software in January.
Why choose January? Because that was the month Teams software sold the most, thanks mainly to the support of many Stanford alumni.
Following that, without the boost from those personal connections, sales were likely to drop.
Indeed, as Dean had predicted, the sales in February could be considered good if they were half of January's.
It was already late February, and the longer the negotiations dragged on, the more disadvantageous it was for Byte Software.
If they were to wait until the end of the month, investors would want to see the latest month's sales figures for Teams, and by then Dean would be in a disadvantageous position.
