Valuing an Online Business

  • Tune-Up Your Online Business for a More Profitable Exit Strategy
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    Tune-Up Your Online Business for a More Profitable Exit Strategy

Tune-Up Your Online Business for a More Profitable Exit Strategy

When you start your online business, your goal is to grow it and make it profitable. As your online business moves out of the startup phase and becomes an established business, your goal is to continue to grow, increase your market share and keep your existing customers coming back to you. But then what comes next?

Some online business owners start a company with the plan of owning it forever and passing it on to the next generation, but increasingly, people are founding online startups in hopes of one day selling their companies for a large profit and then taking […]

Sell Your Online Business For Millions

You’ve worked hard to build your business. You found the perfect niche, and then you developed a strategy for growth that’s working. While you’re making money now, the ultimate payoff will come when you sell the web business. Your company could be the next Internet business selling for a million-plus, but only if you’re smart about how you sell that online business.

1. Start Early. The best time to start thinking about selling your business is well before you actually plan to list it. You want your business to be in the best possible financial situation when it comes time […]

Selling a Business in Just Nine Steps

Every Internet business is unique, but still, the sales process for any online company or e-commerce store is similar. No matter what type of business you’re hoping to sell, a qualified Internet business broker should guide you through the following eight steps:

1. Valuation – Prior to the execution of a listing agreement the broker will require specific financial and operational information on your business. Upon receiving that information the broker will then develop a valuation which will indicate a suggested listing price for your business. That valuation will be driven by the historical financial performance of your business, its […]

Types of Owner Financing

Bank loans for buying Internet businesses are more difficult to obtain then for a brick and mortar business, which can stymie the ability of prospective buyers to invest in new businesses. If you’re selling an Internet business or hoping to purchase one, the restrictiveness of lenders doesn’t mean that you’re completely at the mercy of banks. Buyers can still purchase Internet companies with numerous owner financing agreements.

With owner financing, the seller agrees to turn over the business for less than the full purchase price. Then, the buyer settles the obligation in the future. There are various methods of owner […]

My Small Internet Business Has Big Potential

Every business owner knows that no matter how great their business is, there is always room for improvement.  When you own a business you are often faced with decisions that mean you are investing your time and money into certain aspects of the business, leaving the door open for opportunity.  When it comes time to sell your business, this is marketed as the “potential”. At Acquisitions Direct, our brokers are often faced with this question from our buyers, “If the business you are selling has big potential, why hasn’t the current owner been able to develop the potential?”.  The […]

  • Online Regular Businesses
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    Why some online “regular” businesses sell for huge premiums

Why some online “regular” businesses sell for huge premiums

When it comes to starting a successful online business, ordinary seems to be the way to go. In a struggling economy, it’s the everyday products and services— health and beauty products, sports and fitness products, IT and online marketing businesses, etc.—that outshine the novel ones.

In general, most online businesses usually sell for about 2.0 to 4.5 times the seller’s total discretionary income. But there is a certain section of the market—namely, businesses that provide common goods and services that command the higher range of these multiples. Why are these companies selling for so much? Here are a few reasons:

Wide […]

  • Accurate Valuation Is Critical When Selling Your Online Business
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    Accurate Valuation Is Critical When Selling Your Online Business

Accurate Valuation Is Critical When Selling Your Online Business

You’ve worked hard to build your business and invested your time, money and passion into seeing it succeed. When it comes time to sell, you want to get the most that you can for all of that work that you put into your enterprise, and that’s why business valuation is of such importance. An accurate valuation will help you to make a fair profit from selling your business and also ensure fairness for buyers.

But just what is considered when creating an accurate valuation? Here are some of the key components:

Cash flow – One of the most important considerations […]

Importance of Accurate Financials When Selling Your Business

When you’re preparing to sell your Internet business, you’ll have a number of things to consider and do. As you develop your exit strategy, one thing that you simply can’t afford to neglect is preparing accurate financial statements. While you can tell prospective buyers about your success, your financial statements are the proof that buying your website is a lucrative business opportunity, so you simply can’t underestimate their importance.

Problems with the accuracy of financial statements can jeopardize any deal by:

Ruining buyer trust – If a buyer believes that you intentionally withheld or falsified information, he or she may […]

Valuing an Online Business from a Buyer’s Perspective

When an online company goes up for sale, the company owners and officers usually place value on different aspects of the business than does a potential buyer. But it is important that sellers consider the factors that will be important to buyers, because these things can ultimately make or break a sale.

Overall, keep in mind that buying or selling an Internet related business is very different from buying or selling a brick and mortar business; the internet channel utilizes very different skill sets for customer lead generation, order fulfillment, and customer service.

In general, buyers seeing Internet businesses are concerned […]