Quote:
Originally Posted by movieguy
Don't talk to Jay or Jimmy at Broker. You don't need a middle man.
Don't entertain offers here. Go to Wickedfire.com or any of the gay boards. Webmasters who run gay sites, will appreciate the value of your offering and will give you a fair price. I was present when Shap sold his company to Mindgeek, and they severely undervalued the gay side of Shap's business, simply because that was not their strength and they wouldn't know how to properly nurture it.
Don't sell for less than 5X yearly net profit, but aim for 10X. In this ultra low interest rate environment, even junk bonds are getting well less than 5%. A business that can return 10% is phenomenal.
Do have all your figures ready to show prospective buyers, and an NDA for them to sign (if you care about your numbers leaking out)
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I totally agree that it makes sense to target who you sell your sites to, same as you would target surfers.
In pitching, if you want a high multiple, it makes sense to be able to answer why 10 years of profit would actually be worthwhile to the buyer.
Many people who can buy will offer a multiple based on how long it would take them to knock off what you do.