Francisco Partners
A private equity firm that bought MyFitnessPal.
- Paid $475M
- App still growing
- Valued on future run rate
- Paid over $100M less
- Growth had slowed
- Valued on last 12 months
Sell before you need to.
From MyFitnessPal sales: Under Armour 2015, Francisco Partners 2020
What was said about Francisco Partners
Sell the growth story before growth slows. Under Armour bought MyFitnessPal for $475M in 2015 while it was growing. Francisco Partners bought it in 2020 for over $100M less, after growth slowed.
Buyers value fast-growing, profitable apps (30 to 50% EBITDA margin) on future run rate, up to 6x. Slower apps are valued on the last 12 months. The advice is not to time the peak: let the buyer pay for the peak still ahead, and go to the table with other options so you are not forced to sell. Quote: "Sell before you need to."
$172M of App Building Advice in 50 Minutes
It bought MyFitnessPal in 2020 for over $100M less than Under Armour paid, after growth slowed.
Sell the growth story before growth slows. Under Armour bought MyFitnessPal for $475M in 2015 while it was growing. Francisco Partners bought it in 2020 for over $100M less, after growth slowed.
Buyers value fast-growing, profitable apps (30 to 50% EBITDA margin) on future run rate, up to 6x. Slower apps are valued on the last 12 months. The advice is not to time the peak: let the buyer pay for the peak still ahead, and go to the table with other options so you are not forced to sell. Quote: "Sell before you need to."
More in Investors & studios
Investors & studiosY Combinator
A startup accelerator that funds and advises early-stage companies.
11 sources · 18 tips
Investors & studiosSequoia Capital
A venture capital firm that backs early-stage technology founders.
8 sources · 18 tipsBlue Throne
An app acquirer that buys working consumer apps for seven and eight figures and scales them.
4 sources · 6 tips
Investors & studiosBending Spoons
An Italian company that acquires digital businesses and runs them on one shared platform of proprietary tools.
2 sources · 19 tipsSocial
A bootstrapped app studio that buys apps after their viral peak and grows them with AI ads and testing.
1 source · 10 tips
Investors & studiosTeledyne
A conglomerate founded in 1960 that bought niche businesses, ran an insurance investment arm, and repurchased its own stock.
1 source · 17 tipsVolo Ventures
A venture firm investing in consumer apps and AI-powered consumer products.
1 source · 9 tips
Investors & studiosFirst Round Capital
A seed-stage venture capital firm that backs early technology startups.
4 sources · 5 tips