Qualified Estimates on Acceptable Multipliers for Online Businesses

[TinkyWinky]

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?

Cheers
TW

 

[namealot]

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?

Cheers
TW

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?


http://www.quietlightbrokerage.com/resource/selling/valuation-formulas/