They Got Acquired - Indie game sells for millions 👾

August 19, 2022
​Read on web​

It’s the quintessential game developer’s dream: to create a big-hit game that sells for millions.

And for Matt Dabrowski, creator of the popular video game Streets of Rogue, it’s also real life, ending with a $6.5 million sale. But it was far from an overnight success story.

Dabrowski has built video games since the late ‘90s. He created his first game, BurgerJoint, during high school. After college, he spent a few years working in the games industry, and when he lost his tech job in 2015, he began developing a roguelite video game full time.

Dabrowski self-funded the build of Streets of Rogue, to the cost of about $18,000. He published it years later, and the game went on to sell more than 1 million copies.

His publisher, tinyBuild, then made a multi-million-dollar offer for the intellectual property behind Streets of Rogue.

Here's how it played out ⏬

🎮 Going rogue: How a game developer turned a partnership into a $6.5M sale​

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🔎 4 ways to find a buyer for your business

What's the best way to find a buyer for your online business?

The answer depends on several factors, including the type of business you run and how much revenue you’re bringing in.

Most of all, it depends on your preference and what you want to get out of a sale.

We've interviewed dozens of sellers since launching this publication earlier this year. Most of those entrepreneurs connected with their buyer in one of four ways.

We explain those options in this post:

​Want to sell your online business? Here are 4 smart ways to find a buyer​

See an earn out in your future?

I've talked with a bunch of entrepreneurs lately who are considering earn outs as part of their acquisition package.

I've also kept up two different friends going through earn outs — and neither situation has turned out how they'd hoped.

Remember, once you sell your business, you are no longer in control. No matter how much you respect the buyer, they probably won't run the business like you did.

So before you say yes to an earn out, make sure you've considered all the things that might not go your way. Whenever possible, work with an advisor who can help you avoid committing to anything that won't work out in your favor.

A few tips for structuring earn outs:

👉 Don’t tie earn out payments to net income

After you sell, you might not have control over how the business operates. You likely won't be able to influence net income like you could when you owned the business.

👉 List your requirements

The earn out doesn’t just describe targets your former business must achieve for you to receive your compensation. It can also define actions the buyer must take that make it possible to hit those targets.

Want more ideas? You'll find more suggestions in How to negotiate a favorable earn out.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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About us 👋

Our mission is to redefine startup success by showcasing companies that sell for $100K-$50M. Learn more about us or follow us on Twitter.

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