Digital Exits’ report “What is Your Online Business Worth” unveils new details how web based businesses are really valued, what makes some worth far more than others, and the core features tech investors look at when forking out huge sums to acquire digital assets.
The last couple of years have seen numerous large website, tech startup and domain name acquisitions. Notable sales include; an ecommerce supplements store selling for $6M, a yoga product drop shipping website sold for $4M, HARO, Facebook’s takeover of Branch for $15M, Trulia taking over RealEstate.com as part of a $355M deal, and Google acquisitions of DeepMind ($500M) and Nest for $3.2B in cash.
The big dilemma that has faced startups and online businesses recently is how to value their digital assets, and perhaps most important; how to add tangible value that can be cashed in on.
Analyzing the data from over 250 business sales in 6 different categories of business model some of the key metrics this report reveals include:
· 0.32 – the average multiple ecommerce businesses sold for above offline businesses
· $514,725 - the average sale price of an online business
· $2M - $5M – the range in which businesses sold for the highest multiple of earnings
· 3 – number of staff Help a Reporter Out had when sold for millions of dollars
· 90% - HARO’s profit margin when acquired
Looking ahead, founder of DigitalExits.com Jock Purtle who has been in the valuation business since he has 9 years of age makes some interesting predictions for 2014 and beyond. Among Jock’s observations of online trends developing in 2014 are “Investment firms increasing investment, particularly in the sub $5M deal space”, clicks and bricks models and a dramatic rise in the price being paid for sub $200k deals.
View the full “What is Your Online Business Worth” report online, discover an exciting podcast series including episodes on selling your business for $100 million, and claim a free website evaluation at http://www.digitalexits.com.
415 315 9451
415 315 9451