Selling your company

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  • makeabuck
    Confirmed User
    • Feb 2013
    • 629

    #1

    Selling your company

    How do you come up with a figure for how much to sell your adult oriented business? Is there a general rule of thumb?
  • Markul
    Likes Pie
    • Dec 2007
    • 12403

    #2
    The only "right" answer is: What someone is willing to pay for it.

    I recently purchased an adult business for something like 5 months of turnover (not profit), because I felt it had potential.

    If you are selling a bunch of affiliate websites, I would never pay more than 3 x monthly profit. Because usually, most of that stuff being sold is crap. But some might want to pay more, so it comes right back to where I started: What people are willing to pay
    But.... I pulled out...

    Comment

    • faxxaff
      Confirmed User
      • Dec 2002
      • 2134

      #3
      A good and solid online business should make 2 or 3 years of revenue as sales price.
      Fire sales are priced around 6 months, but why sell for it?
      We can always wait 6 months for sales to roll in, can't we?
      Asian Babes

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      • makeabuck
        Confirmed User
        • Feb 2013
        • 629

        #4
        So faxx using your logic - if a company profits 200k per year then you should be able to sell for 600k?

        Comment

        • XPays
          Team Player
          • May 2004
          • 13002

          #5
          HuntingMoon has sold multiple companies for GFY members- email [email protected] for a free valuation
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          • SleazyDream
            I'm here for SPORT
            • Jul 2001
            • 41470

            #6
            Originally posted by Markul
            The only "right" answer is: What someone is willing to pay for it.

            I recently purchased an adult business for something like 5 months of turnover (not profit), because I felt it had potential.

            If you are selling a bunch of affiliate websites, I would never pay more than 3 x monthly profit. Because usually, most of that stuff being sold is crap. But some might want to pay more, so it comes right back to where I started: What people are willing to pay
            sheep say that

            wolves say what you can MAKE them pay
            This dog, is dog, a dog, good dog, way dog, to dog, keep dog, an dog, idiot dog, busy dog, for dog, 20 dog, seconds dog!

            Now read without the word dog.

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            • faxxaff
              Confirmed User
              • Dec 2002
              • 2134

              #7
              Originally posted by makeabuck
              So faxx using your logic - if a company profits 200k per year then you should be able to sell for 600k?
              Many factors are at play. For a service based business without hard assets it would be a fair price based on stable revenue. Let's say a website that brokers ads or sells memberships for years. Of course it would depend on stable history. And I know, cheap bargain hunters will disagree ...

              If you have a strongly growing business that made 20k last year and 200k this year, you would have projected earnings of 2 Million for next year. Then a price of 6 Million would be more appropriate.

              If hard assets like real estate and patents are included it would increase the number.

              Anyhow, it all depends to how good your business is and how much it is worth to others and not based on numbers, only.
              Last edited by faxxaff; 03-01-2013, 11:37 AM.
              Asian Babes

              Comment

              • makeabuck
                Confirmed User
                • Feb 2013
                • 629

                #8
                Originally posted by SleazyDream
                sheep say that

                wolves say what you can MAKE them pay
                Can I borrow your wolf outfit?

                Comment

                • Major (Tom)
                  So Fucking Banned
                  • Nov 2003
                  • 32492

                  #9
                  Originally posted by makeabuck
                  How do you come up with a figure for how much to sell your adult oriented business? Is there a general rule of thumb?
                  I'd want at least 2 years gross. I've turned down 1 years gross before on a payment plan. I want money in an escrow and not payments. The trick is if it's making money never be desperate to sell. And dont buy into the BS that there is a formula for an online adult business. As it was stated before, it's worth what someone will pay for it and what you will take. If it's a good business with a brand hold out.
                  duke

                  Comment

                  • makeabuck
                    Confirmed User
                    • Feb 2013
                    • 629

                    #10
                    Originally posted by faxxaff
                    Many factors are at play. For a service based business without hard assets it would be a fair price based on stable revenue. Let's say a website that brokers ads or sells memberships for years. Of course it would depend on stable history. And I know, cheap bargain hunters will disagree ...

                    If you have a strongly growing business that made 20k last year and 200k this year, you would have projected earnings of 2 Million for next year. Then a price of 6 Million would be more appropriate.

                    If hard assets like real estate and patents are included it would increase the number.

                    Anyhow, it all depends to how good your business is and how much it is worth to others and not based on numbers, only.
                    You confused me and excited me at the same time. It's a 13 year old well established business. You confused me with the formula above, are you talking about monthly or yearly?

                    Business has been pretty steady over the last 5-6 years.

                    Comment

                    • faxxaff
                      Confirmed User
                      • Dec 2002
                      • 2134

                      #11
                      Originally posted by DukeSkywalker
                      on a payment plan.
                      Yeah, you will never see your full money on a payment plan. There are some burned sheep on this board who sold out on payment plans and had their merchant account closed due to fraudulent activity of the buyer during transition.

                      Why escrow? Ask for a letter of credit or guarantee from their bank It's less than 50 bucks in fees. It's much more reliable and cheaper than escrow.
                      Asian Babes

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                      • makeabuck
                        Confirmed User
                        • Feb 2013
                        • 629

                        #12
                        Originally posted by DukeSkywalker
                        I'd want at least 2 years gross. I've turned down 1 years gross before on a payment plan. I want money in an escrow and not payments. The trick is if it's making money never be desperate to sell. And dont buy into the BS that there is a formula for an online adult business. As it was stated before, it's worth what someone will pay for it and what you will take. If it's a good business with a brand hold out.
                        duke

                        Yah, no desperation at all here. Just interest. And of course if the price is right - who the heck knows.

                        I may contact that auction dude.

                        Comment

                        • XPays
                          Team Player
                          • May 2004
                          • 13002

                          #13
                          i sold 2 xxx,xxx businesses and 2 x,xxx,xxx in the past year along with some smaller ones
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                          XPays always pays! Top Site: * RealJasmine.com * + HotelHeiress® with The Paris Hilton Sex Video
                          Insert the HotelHeiress® HD FEED into your members areas
                          XPin.com Opening for Pin Partners Soonish
                          Mainstream Offers For Emailers and DomainersNONADULT.COM


                          Like Us!

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                          • faxxaff
                            Confirmed User
                            • Dec 2002
                            • 2134

                            #14
                            Originally posted by makeabuck
                            You confused me and excited me at the same time. It's a 13 year old well established business. You confused me with the formula above, are you talking about monthly or yearly?

                            Business has been pretty steady over the last 5-6 years.
                            I was talking yearly revenue. Basically, what counts is the projected revenue for the next two years. If it is growing you have the potential for being way more than status quo. If you are stagnating or moving down, it's a warning sign for buyers.
                            Asian Babes

                            Comment

                            • makeabuck
                              Confirmed User
                              • Feb 2013
                              • 629

                              #15
                              Originally posted by faxxaff
                              I was talking yearly revenue. Basically, what counts is the projected revenue for the next two years. If it is growing you have the potential for being way more than status quo. If you are stagnating or moving down, it's a warning sign for buyers.

                              We definitely grew in the last year. 2011 I had 100k drop, but 2012 had 100k increase which puts me up 200k since 2010.

                              My goal this year is to process a mil - but, that's certainly not profit.

                              Comment

                              • lagcam
                                Confirmed User
                                • Jul 2007
                                • 2890

                                #16
                                You should send an email giving details of exactly what you are selling including numbers to Evan at Hunting Moon, (email already given by him in another post).

                                Talk to a straight talking guy with actual sales under his belt who does this for a living not people with their own ideas of the market and the "norm" based on what they would sell their own business for or pay for somebody else's.
                                Working Cam site for sale - NOT affiliate.

                                Comment

                                • makeabuck
                                  Confirmed User
                                  • Feb 2013
                                  • 629

                                  #17
                                  Originally posted by lagcam
                                  You should send an email giving details of exactly what you are selling including numbers to Evan at Hunting Moon, (email already given by him in another post).

                                  Talk to a straight talking guy with actual sales under his belt who does this for a living not people with their own ideas of the market and the "norm" based on what they would sell their own business for or pay for somebody else's.
                                  I did contact him - and eh, the price isn't right for me yet and I am not desperate to sell and get out of the adult world yet. However - when I am ready, I will hit him back up for sure. Seems to be a very nice guy.

                                  I appreciate your guys advice and input.

                                  Comment

                                  • Supz
                                    Arthur Flegenheimer
                                    • Jul 2006
                                    • 11057

                                    #18
                                    whatever someone is willing to pay or x amount times your monthly incomes.

                                    Comment

                                    • mineistaken
                                      See signature :)
                                      • Apr 2007
                                      • 29656

                                      #19
                                      Originally posted by XPays
                                      i sold 2 xxx,xxx businesses and 2 x,xxx,xxx in the past year along with some smaller ones
                                      Some evaluation guidelines from you?

                                      Comment

                                      • AmeliaG
                                        Too lazy to set a custom title
                                        • Jan 2003
                                        • 10663

                                        #20
                                        3 months gross is fairly common, but, just to kind of reiterate what has been said in this thread, in any business sale, there is the intrinsic value and then there is the value to a strategic buyer i.e. someone where your business fits synergistically into their existing properties.
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                                        • Yanks_Todd
                                          Confirmed User
                                          • Aug 2003
                                          • 2493

                                          #21
                                          Originally posted by DukeSkywalker
                                          I'd want at least 2 years gross. I've turned down 1 years gross before on a payment plan. I want money in an escrow and not payments. The trick is if it's making money never be desperate to sell. And dont buy into the BS that there is a formula for an online adult business. As it was stated before, it's worth what someone will pay for it and what you will take. If it's a good business with a brand hold out.
                                          duke
                                          This is solid.
                                          Todd Spaits - Co-founder -YanksCash
                                          Premium ad-packages available - Skype for details - tmspaits

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                                          • ajrocks
                                            Confirmed User
                                            • Nov 2004
                                            • 4526

                                            #22
                                            Generally you are looking at between 6 and 12 months earnings. It will depend on many factors such as the quality of the product, average RRC's and how steady rebill rates are.
                                            SEO Strategy - Digital Strategy - Cannabis Lead Generation

                                            Skype aj.durden1

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                                            • ErectMedia
                                              Confirmed Chicago Pimp
                                              • Aug 2004
                                              • 7100

                                              #23
                                              depends how optimized you are, if you are fully optimized and I see no room for improvement then I'll pay monthly revenue times ( x months)

                                              if I see weakness or under optimization then I'm willing to go to a higher monthly multiplication as I know with a few tweaks income could be significantly increased therefore cutting positive return time down

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                                              • brassmonkey
                                                Pay It Forward
                                                • Sep 2005
                                                • 77397

                                                #24
                                                i own and run a cleaning biz would never give it up
                                                TRUMP 2026 KEKAW!!! - The Laken Riley Act Is Law!
                                                DACA ENDED - SUPPORT AZ HCR 2060 52R - email: brassballz-at-techie.com

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                                                • makeabuck
                                                  Confirmed User
                                                  • Feb 2013
                                                  • 629

                                                  #25
                                                  Originally posted by ErectMedia
                                                  depends how optimized you are, if you are fully optimized and I see no room for improvement then I'll pay monthly revenue times ( x months)

                                                  if I see weakness or under optimization then I'm willing to go to a higher monthly multiplication as I know with a few tweaks income could be significantly increased therefore cutting positive return time down
                                                  I'm sure someone who was a web guru would see tons of holes in my game and lots of ways to improve.

                                                  Comment

                                                  • MrMaxwell
                                                    Too lazy to set a custom title
                                                    • Jul 2005
                                                    • 10057

                                                    #26
                                                    Originally posted by SleazyDream
                                                    sheep say that

                                                    wolves say what you can MAKE them pay

                                                    Comment

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