I'm a serial entrepreneur with a passion for tech, business intelligence and mergers & acquisitions. I've co-founded Centurica, FE International & Optimum Feedback and launched Flippa Deal Flow.
I'm also a Business Advisor for Quiet Light Brokerage.
So you’ve put aside a certain amount of spare cash and you’re trying to figure out whether you should put it all into one online business purchase or diversify by completing several acquisitions?
You’re certainly not alone. In fact, most people who enter the industry nowadays ask this exact question.
Here’s my opinion.
Most established web businesses tend to sell for anywhere between 2x and 4x of their yearly cash flow, but for many buyers having to wait 4 years to recoup their investment seems long, especially if there are significant risks involved.
Here are 6 “rules” from my own acquisition strategy, along with some case studies, showing you how I look beyond the “profit multiple” when completing acquisitions and usually achieve a far better ROI.
Today is an important day. It marks the victory of an important battle in my personal War Against Procrastination.
For no less than 3 years I’ve been thinking of organising an “Ask Me Anything” – and the time has finally come.
See you on Reddit!
“Absentee owner”, “Completely Passive”, “Sit back and count the money” are terms often used by both sellers and unfortunately many brokers. But do passive opportunities really exist, and if they do – how should one go about identifying them?
So you have a website or an online business and you’re considering selling it for a lump sum of cash that you can then invest in your newest venture, or perhaps use it as a retirement fund or to finance that round-the-world trip that you’ve been dreaming of?
It may seem fairly easy and simple, but in reality, there are a number of pitfalls that the majority of first time sellers don’t know to avoid, resulting in deals falling through at the last minute, seller getting paid much less than the business is actually worth, or in not being able to find a buyer at all.
Buying online businesses often involves a significant learning curve, especially when dealing with more complicated businesses that come with a lot of moving parts. You need to know what’s the fair price to pay, how to complete proper due diligence, how to organise the handover of the business, what to do with the business after you’ve bought it and much more.
But there’s one rule that’s the most important of all – and not following this will quickly lead you to a financial disaster.
Fancy meeting up in the US over the next few weeks? Let me know!
I’ll also be speaking at the Ungagged Convention (17th November) and Flippa’s One Day Masterclass (23rd November)
On both events I’ll be covering various aspects of web business due diligence, from the technical side of it to the overall logic and business model vetting mechanics.
Inspired by a recent post that I read, I’m sharing my insights on how a website’s traffic sources directly influence its market value and longevity. Whether you’re buying, building or selling web businesses, it’s incredibly important to understand traffic sources and their effect on the site.
Performing due diligence on websites or online businesses is needless to say a difficult and daunting task. But it would be MUCH easier if it wasn’t for the large quantities of myths and flawed advice being thrown around by self-proclaimed “professionals”. This article looks at the 7 most common DD myths.
If you’re someone who’s looking to purchase an online business or purchased a few already, you probably know that due diligence is a difficult subject, and there are a lot of things to verify and confirm before you can safely assume that the site you’re about to commit your hard earned money to is actually worth it, and not the work of a smart scammer trying to sell you a dud.
But even the buyers who tend to perform extremely thorough due diligence often completely neglect what I consider by far the most important due diligence question/assessment when buying an online business ……
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