Domain Manage

Qualified Estimates on Acceptable Multipliers for Online Businesses

Discussion in 'Business Discussions' started by TinkyWinky, Aug 13, 2013.

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  1. TinkyWinky United Kingdom

    TinkyWinky Active Member Acorn Supporter

    Mar 2006
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    Does anyone know of any reports or qualified blogs on how to value a group of websites as a business?

    We got some legal rumblings where they have gone from 3 to 5 and now think it's 7 times profits... if only.

    The business is purely web-based - they are valuing an income that is solely dependent on organic traffic and very little else. It is a membership type basis - where we have around 750 paying members - but it is purely online (i.e. take away the website and members would very quickly disappear!)

    Now I know that anything above 12 months value on profit can be attributed to factors like the quality of the domain and user data and I have sold previous sites for up to 23 months.

    But they are trying to value this as a true offline business. I need to add that is in our interest to have a 2 or max of 3 as the multipler - but I need to qualify this !!

    Anyone able to help or know a man/woman that can?

  2. Domain Forum

    Acorn Domains Elite Member

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  3. namealot United Kingdom

    namealot Well-Known Member

    May 2008
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    Working just on multiples is very risky you can manipulate them so easily? Many other things to take into account below gives you an insight as a starter, Then its just down to hard work and research if you don’t want to get ripped off or sell magic beans that is?
    Last edited: Aug 13, 2013
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