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Best Way to Sell Business (Revenue $220K)?

by TerribleAche
22 replies
I started a press release service for a certain market in 2011 and have grown the business steadily since.

I'm now looking to move on, and would ideally like to sell. I think it's a fairly attractive package with year-on-year growth to revenues of $220K in 2014 (which allowed me to put $130K in my back pocket).

I've had fun with it - takes about 4/5 hours of work a day, with all new business coming in through PPC.

As this isn't a $500 affiliate site, but more of a serious money maker, where should I consider selling? I'm based out of Canada but 95% of the client base is in the United States. Business is run as a simple sole proprietorship.

I know about Freemarket.com, but it looks like they cater to the lower-end price bracket. Can anyone suggest a possible avenue for sale that has buyers willing to pay more? The value of this business would naturally be a lot higher.

Many thanks in advance,
T.A.
#$220k #business #revenue #sell
  • Profile picture of the author Gambino
    You could try Flippa. Which could be hit or miss for an actual viable business. Just set a reserve price your comfortable with accepting.

    I would talk to a business broker and try to sell it as an actual business. They may have connections and buyers looking for what your selling and willing to pay a bit more. Or at least have connections to potential buyers.
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  • Profile picture of the author talfighel
    Flippa will be a good place to start but if I were you, I would keep this.

    I think that you will wake up a few months later after you make the sale and you will regret it. I have seen people who were in similar situation like yourself and then felt sorry for selling it.

    That's my opinion.
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  • Profile picture of the author mikefashen
    I don't usually like to say this but ... ignore what the previous two people told you with flippa.

    It's not a site for a serious business.

    Instead you want to sell your business NOT as a "web site that makes money" but instead as an actual serious business.

    I would highly recommend contacting a business broker and you tell him you're looking for 4 years worth of current revenues as a sale price.

    The most likely "customer" for buying your business is someone like PRweb or another major press release service.
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    • Profile picture of the author agmccall
      try empireflippers

      al
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  • Profile picture of the author CyberAlien
    [DELETED]
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    • Profile picture of the author mikefashen
      Originally Posted by CyberAlien View Post

      Send me a PM, I'd be interested depending on the amount of time it takes up and how much further I think it can be scaled.

      Based on what you've posted, it's probably be valued at about $195,000 depending on scalability.
      He did 130k in actual profit. That's a business worth 400k pretty easy (3 times profit is pretty normal).

      Telling this guy you think his business has a valuation of less than 200k seems like more than a little bit of a rip off.

      And seriously, to another PR firm his business is worth 3 to 4 times REVENUES pretty easily which is why he should start by looking for a business broker who can get him in the door at some place that wil give him quite a bit more than your extreme low ball offer (sorry for raining on your parade)
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      • Profile picture of the author CyberAlien
        Originally Posted by mikefashen View Post

        He did 130k in actual profit. That's a business worth 400k pretty easy (3 times profit is pretty normal).

        Telling this guy you think his business has a valuation of less than 200k seems like more than a little bit of a rip off.

        And seriously, to another PR firm his business is worth 3 to 4 times REVENUES pretty easily which is why he should start by looking for a business broker who can get him in the door at some place that wil give him quite a bit more than your extreme low ball offer (sorry for raining on your parade)
        It's much easier to make suggestions than offers isn't it you should try to make a living out of that instead of $7 special offers.
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  • Profile picture of the author TakenAction
    Why not hire someone to work 5 hours a day at $10-$15 per hour?

    $15 per hour @ 5 hours a day 6 days a week = $450 x 4 weeks = $1,800 x 12 months = $21,600
    per year for someone to run the business for you.

    If you net $130k of $220k revenue that still is a huge profit for you while you do nothing but overlook the business at a few hours a week...
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  • Profile picture of the author Internet Trillionaire
    Contact a business broker and see what the valuation they give you and what offers they bring you.

    But like TAKENACTION says, Keep the business, I would also suggest employing someone or get a virtual assistant to do all the work for you. A business with employees is worth more than a one man band.
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  • Profile picture of the author Sarevok
    I would start with Flippa.

    It's organized, they have threat vector security in place, and there are probably hungry buyers on the site.

    You could even advertise your Flippa listing OUTSIDE of Flippa if you intend on garnering the attention of those outside of the Flippa paradigm.

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  • Profile picture of the author slammer81
    Wasting time on flippa IMHO.

    I did a similar thing a while back - had an offline biz that I wanted to move on - profited about 4-5k every month for a couple of afternoons work a month. so 50K+ p.a.

    Threw a website up and Flippa'd it. Nobody serious really turned up, I was looking for 80K at least, which was a screaming bargain as it was.

    I still overlook the biz 3 years later, still earning the same. It's hard to make a case for ongoing profitability on Flippa I think. A few shady's have everyone with their guard up.

    Please let us know how you get along irregardless !
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    • Profile picture of the author Oggyoi
      Go through a legitimate business broker, sales agent.

      Forget flippa, it's not a website or domain you're flipping, you aren't selling a 2 page affiliaste site.

      You have a solid business, making a good profit that come with a website.
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  • Profile picture of the author kushalshah
    I totally agree to all the people out here who thinks 'Flippa' is a waste of time. I have a niche 'pokers.club' parking domain and listed on Flippa since months now. I haven't received a single offer yet so far. You might wanna try 'Market' place section where you could buy/sell domains of forums like Warrior forums, digital points forum etc. You might find good buyer!

    PS: Since you're making so much of money, you might wanna reconsider the thought of selling that website. Infact, you can focus on doubling and trippling the amount every year.
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  • Profile picture of the author maxsi
    In my opinion a Broker is the best way to SAVE your time and get more SERIOUS customers with a good offer for your business
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  • Profile picture of the author gabibeowulf
    Your best bet is a website broker - they usually have lists of buyers that are interested in high end businesses. Website markplaces (like Flippa and the other) get flooded with low-end entries, which make it difficult for the right buyers to filter through all that noise, which is why most of them work with brokers that only present a couple of pre-researched opportunities per month.
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  • Profile picture of the author Eagle07
    Have you tried bizbuysell.com?
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  • Profile picture of the author rkcc4
    Forget Flippa

    Find a competitor in the same business and sell it to them for the best price. Make sure all your processes are clearly documented so it can be run without you.

    Other alternatives are:

    You could create an IM product teaching others how to duplicate your success, partner with someone to do this if you have never done it before.

    I would document the processes, identify roles, e.g. adwords manager, site admin etc. then outsource the work so I freed up my time but still had the income.

    Book to help you with that process mappting is emyth revisitied, costs 1 cent on amazon, not an aff link!!

    http://www.amazon.com/gp/offer-listi...=used&sr=&qid=
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    • Profile picture of the author yukon
      Banned
      Originally Posted by rkcc4 View Post

      Find a competitor in the same business and sell it to them for the best price. Make sure all your processes are clearly documented so it can be run without you.

      This here.

      Anyone with a similar business looking to expand would buy, assuming the OP claims can be proven.

      BTW, this thread is 1.5 years old and OP has one post. RIP.
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  • Profile picture of the author J50
    Talk to Thomas Smale - he's a very well connected guy

    https://uk.linkedin.com/in/thomassmale

    Website Broker - Internet Businesses for Sale by FE International
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  • Profile picture of the author ramonavandusen
    Selling a business seems like it should be as straight-forward as selling a home. But, in fact, its a complex process that involves not only setting a price and finding a shopper, but organization the financial and lawful aspects as fine.
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  • Profile picture of the author Kate C
    The advice about selling as a business rather than a website is solid advice. Most businesses are online now and when they are sold, it is not the website that is on sale but the whole business. I also concur with the other person who sad you might regret selling so you should really think about why you want to sell. if you are overwhelmed, hire someone. A business takes time to build but in the end it will be worth it.
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  • Profile picture of the author RichBeck
    Originally Posted by TerribleAche View Post

    I started a press release service for a certain market in 2011 and have grown the business steadily since.

    I'm now looking to move on, and would ideally like to sell. I think it's a fairly attractive package with year-on-year growth to revenues of $220K in 2014 (which allowed me to put $130K in my back pocket).

    I've had fun with it - takes about 4/5 hours of work a day, with all new business coming in through PPC.

    As this isn't a $500 affiliate site, but more of a serious money maker, where should I consider selling? I'm based out of Canada but 95% of the client base is in the United States. Business is run as a simple sole proprietorship.

    I know about Freemarket.com, but it looks like they cater to the lower-end price bracket. Can anyone suggest a possible avenue for sale that has buyers willing to pay more? The value of this business would naturally be a lot higher.

    Many thanks in advance,
    T.A.
    With $130,000 in net revenue for only one year, it is very tough to place a value on the business.

    Someone looking to buy a business like this, for $220,000-$500,000, is going to want to see strong sales over a couple years or more... depending on the buyer.

    Either way, I'd strongly suggest getting all of your Financials in place... and finding a reputable business broker.
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