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Ask HN: Any non-acquihire, less than $1M app/startup exits?

9 pointsby vishalchandraover 10 years ago

4 comments

GamblersFallacyover 10 years ago
Here are some actual sales figures:<p><a href="http://feinternational.com/buy-a-website/#tabs-3" rel="nofollow">http:&#x2F;&#x2F;feinternational.com&#x2F;buy-a-website&#x2F;#tabs-3</a><p><a href="http://www.webrokr.com/soldsites.php" rel="nofollow">http:&#x2F;&#x2F;www.webrokr.com&#x2F;soldsites.php</a><p>For sites&#x2F;apps with steady traffic &amp; earnings, the general rule of thumb for calculating valuation has been multiples of monthly net profit:<p>* 2002-2004: 3 to 6 x monthly net<p>* 2005-2012: 10 x monthly net<p>* 2012-2014: 20 x monthly net<p>* 2014: 30 x monthly net<p>So to flip a site for &gt; $200k, you need to be doing approx &gt; $7k&#x2F;month.
flipfilterover 10 years ago
There are a few hundred live examples from 2013 in the Centurica website buyer reports - <a href="http://www.centurica.com/website-buyers-report" rel="nofollow">http:&#x2F;&#x2F;www.centurica.com&#x2F;website-buyers-report</a>.<p>At time of writing (August is usually quiet) there are around 300 brokered,web-based businesses for sale between $20k and $2M.<p>Averages are severely deceiving but If you were to look at average multiples alone you would find a typical range between 1.8 and 3.7x annual net profit.
MalcolmDiggsover 10 years ago
Sure, it happens every day on places like Flippa, WebsiteBroker, and eBay.<p>It&#x27;s not the sexiest process, or the highest valuations, but if you&#x27;re looking to exit for 5-to-6 figures, you might be able to find a buyer there easily.
vishalchandraover 10 years ago
More interested to know about exits in the $200K - $1M range. It will be interesting to note exits at the lower end of the spectrum.