Hey guys been stalking the sub for a few years, and finally am in a position to ask a relevant question.

I run an agency startup that specializes in AI(Automation, chatbots, and generative AI), marketing, and data analytics solutions. I am the only employee of the company, but I’ve worked with interns to work on help with internal projects.

I recently partnered with another AI company in my area to help streamline a key part of their larger scale projects. This positions me well to get access to their network & get my name out there more as I’m still relatively small.

For background my company is a less than a year old(formed in April of this year) and is on track to finish the year out between 20k-30k in revenue.

So back to the point. The AI company I partnered with is interested in a potential buyout after seeing the demo for a line of business I am offering to white label through their company. They claimed to had interest in doing so before but are much more open to it after seeing said demo.

I am excited about the opportunity and have been offered a position in the company even without merging my business with theirs, but I’m not sure where to even start thinking of a sales price. I’ve heard of multiples but am not sure how to actually utilize them when building a price. They’ve asked me to come up with an offer, and I’m meeting with both cofounders next week to try and gauge their range of expectations.

How should I think about preparing to sell and coming up with an asking price?

Thanks in advance to anyone who can reply!