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Finding the accurate value of an online business is a difficult and complicated task. It is similar to valuation of a normal business but has a key difference. The absence of physical assets can make the valuation process more difficult.
If you’re clear on the methods available, their pros and cons, you can easily obtain a realistic valuation of your business. However going with a professional business broker can also help you a lot. List hereunder are some critical things that an M&A broker performs to find the accurate value of a business.
1. Traffic Value
In this method, the business broker identifies top key words that will pull majority search traffic to the respective website. Then, they find out the Cost-Per-Click (CPC), which is the monetary value of each keyword.
2. Discounted Cash Flow (DCF) Analysis
One of the most thorough ways to value a business is through DCF analysis. It involves forecasting the free cash flows of the business and discounting them with a predetermined discount rate, usually the weighted average cost of capital (WACC) for the business in question.
3. Precedent Transactions
Looking for precedent acquisitions of similar companies is another approach to determining a value for a business. With the comparable transactions method, you should be looking for comparable metrics, usually multiples of earnings or revenue. It is typically used as a frame of reference by business brokers against other methods rather than being the method to actually determine the value.
4. Earnings Multiple
The core metrics in this method include P/E multiples as well as EV/EBITDA and EV/Sales. The simplicity of this method attracts many small internet companies. The value is calculated by simply multiplying seller’s discretionary cash flow (SDC) by a multiple that is appropriate for the business.
If you are looking for a mergers and acquisitions broker who knows precisely how to evaluate a website, look no further than M&A broker ValleyBiggs. They specialize in middle market companies that fall within the technology, website, and internet niche, and can provide their clients with professional services that have proven to be successful again and again. Call their team at 800-980-4145 today to set up your website valuation.
Right now is the best time to start an online business. With the internet booming, you’ve probably had a few online business ideas that you’ve wanted to pursue. But with so much competition, you might not be sure where to start.
You must know exactly what you’re doing, what’s profitable, what should be your marketing plan, carve what is the niche for your brand and much more. Below are a few business ideas that might yield most profits:
1. Mobile Apps
With the boom of the smart phones, mobile apps have become a huge industry. If you have a sweet idea for an iPhone or Android app, you can easily hire a programmer to get the job done and start earning.
2. Affiliate Marketing
One of the easiest ways to make money online is affiliate marketing. An affiliate is someone who receives a commission for selling products for other companies, whether it’s on their own site or through other channels like eBay. You don’t have to develop any products yourself, just sell other people’s products.
3. Domains
This method is very easy to execute and takes little time or investment. In this method, people simply buy and sell domains. You can buy a domain name at registration price or even lower and sell them for a profit. Before starting this type of business, you should do your homework on domain names auction site to see what’s popular in terms of domain names.
4. Ecommerce Website
It is very easy to start an ecommerce website these days. It is a very powerful business model that can make you a lot of money. And with methods such as dropshipping, you don’t have to worry about things such as delivery or warehousing.
4. Ecommerce Website
It is very easy to start an ecommerce website these days. It is a very powerful business model that can make you a lot of money. And with methods such as dropshipping, you don’t have to worry about things such as delivery or warehousing.
5. SEO Business
The ability to appear organically and relevantly on search engines like Google is not only becoming more competitive, but also more lucrative. This doesn’t just go for doing work for clients, but also for yourself. You could launch any number of online businesses, websites, and blogs with the right amount of SEO skills.
If you’re thinking about buying an online business, contact ValleyBiggs today. They have a team of experienced online business brokers who knows about the ins and outs of buying the businesses. You can call them today at 800-980-4145 to fix your free consultation.
This press release is to announce to readers that acquisitions and mergers brokers, ValleyBiggs, provide superior M&A advisory services to clients.
ValleyBiggs, a leading internet Business Broker in the USA, provides superior M&A advisory services to clients in the middle market.
They have a team of skilled professionals including, deal maker, attorneys, M&A Brokers, accountants and executive advisors who have been in the industry for years and have helped a huge number of business owners to sell their business successfully. Their professionals directly communicate with the client’s key stakeholders to make a strategy that make sense for their clients. The founders of the company themselves owned and sold a number of e-commerce business and helped hundreds of clients in selling their online businesses for the best prices possible
A representative of internet business brokers, ValleyBiggs, talked about their services, “Our strategy has been perfected over time, but generally, and as with everything we do, first we develop a strategic plan. This plan reviews the buying entity, its team, its financial wherewithal as well as its ability to obtain funding or lending. We work directly with the client’s key stakeholders to define a strategy that make sense for the client. That includes, identifying target entity specifics, like company size, market share, industry and synergies. Once the target is well-defined, then an acquisition strategy is put into place and executed, including the search and screening of target companies. Once one or more target companies are identified, then term sheets are developed indicating interest in the acquisition of the company. If the terms are agreed upon by all parties, a definitive agreement is executed and due diligence begins.”
About Valley Biggs
ValleyBiggs is the preeminent Middle Market Technology, Internet and Website M&A firm in the country. They represent the middle market in these niche sectors and in all things digital, including Amazon Companies, Digital Marketing Firms, Ad Networks, and much more. The executive team behind ValleyBiggs is well-positioned to maximize shareholder value and exceed expectations in the purchase or sale of a mid-market website or other digital company due to their decades of experience representing buyers and sellers of internet companies as well as owning and operating a number of web properties in the mid-market.
Contact Information:
Website: http://www.valleybiggs.com
Phone: 800-980-4145
Email: info@valleybiggs.com
Preparing your online business for sale is not an easy task. There are lots of things involved in selling process. So, business owners who want to sale their online business take a number of considerations before putting it up for sale. Since selling a business is a complex process, there are many obvious mistakes that you could make. Here are a few mistakes that you should avoid when selling an online business:
1. Inadequate Preparation
If your desire is to sell your business, then you need to set a clear goal now as to what you would like to sell your business for. Insufficient preparation can cost you a lot. There are many business owners who don’t prepare sale before putting their business up for sale. Most experienced business brokers recommend owners start the preparation process at least two years before the business is listed.
2. Not Focusing on Business Development
While preparing their business for sale, there are business owners who stop adding value to their business. It is one of the most common problems with every business seller that can affect their deal. After all, every buyer wants to buy a business which is doing great in their domain.
3. Not Aligning Financial Information about Your Business
This process is a bit lengthy and tricky, but you can’t sell your business without proper documentations. Buyers prefer buying a business that is well-documented and has a clean financial record.
4. Setting Unrealistic Value
There are majority of sellers who have a tendency to set a very high price before they’ve determined value. Setting prices too high can leave your business unsold for longer period of a time since potential buyers have great idea of business valuation.
5. Failing to Negotiate
When you fail to successfully negotiate, the results can have a dramatically negative impact on your financial planning over the long term. Moreover, your inability to negotiate can give your buyers the edge over you.
6. Not Hiring a Professional Broker
In business, a solid preparation is everything, especially when it is coupled with the right professional skills. Fortunately, there is a professional who can assist you in selling your business for top dollars. A broker in the industry for years knows how to increase the sale price and identify a potential buyer who can pay what you’re looking for.
If you are thinking about selling a website business, contact ValleyBiggs today. They have a team of experienced online business brokers who knows how to attract potential customers who can pay a fair amount for your business. You can call them today at 800-980-4145 to fix your free consultation.
Almost every business deal requires a strategy for a successful negotiation. A successful negotiation can make a big difference for the success of your business and your career as well. However, when it comes to the emotional decision to sell a business, not all business owners think rationally during the negotiations. Here are some tips you should follow, when negotiating a business deal:
1. Know Your Must Have: It doesn’t matter if you are a seller or a buyer, you should know what you must get out of that negotiation. Many people go into the negotiation with a vague idea about what they want. You should be firm about what you want but realistic as well.
2. Do Your Research: You should always do a thorough research and homework before going in for the negotiation. If you want to be effective and fully engaged, you have to have a plan. Gather as much information as you can and gain knowledge about market condition before entering into the negotiations.
3. Establish a Positive Tone: It’s a common misconception that beating the other party is an important part of a negotiation. However that’s not true, as you need to build a strong relationship with the other party during and after the negotiations.
4. Employ Professional Help: M&A firms or brokerage firms can greatly help in negotiations, especially in getting the right price. Their expert professionals will help you in every step of the negotiations and ease out complicated tasks and documents for you.
5. Put it in writing as soon as Possible: As soon as the negotiations are completed and deal is finalized, make sure to have the other party sign a legal contract with all the terms negotiated in it. The longer it takes to put a deal in writing, the more likely it is that the other side may try to renegotiate.
If you’ve an online business for sale, consider one of the most reputable M&A Consulting firm-ValleyBiggs. They have a team of experienced online business brokers who knows how to attract potential customers who can pay a fair amount for your business. You can call them today at 800-980-4145 to fix your free consultation.
Internet has allowed entrepreneurs to start businesses and earn money through channels that were nonexistent earlier. The presence of social media and easy-to-use website builders has allowed numerous businesses to rise. However, starting a business online, especially if you newbie, is a difficult task. Stiff competition can make earning more difficult, but not impossible. If you want to start your own online business, here are some points you should consider:
1. Find a Niche: Before starting an online business, you have to find a niche product or service that you want to sell. Not only should you have a name for the product or service, but also a thorough description of it as well.
2. Build a Plan: Any business without a good mapped out plan has very high chances of failure. You need to create a good, sophisticated business plan to ensure progress and success of the business. A business plan should include the approach for financing, building and marketing of the business.
3. An Appropriate Domain Name: You should build your own website and purchase a unique domain name that fits your business. Also, your website should be easy to navigate and understand, so that your customers don’t face any issues.
4. Easy and Secure Payment Gateway: You should have an easy to use and secure payment gateway integrated in your website, so that not only can customers easily make payments for your products or services, but their information can also be kept safe.
5. Feedback: When starting a business, feedback is very important as it tells you about what are you doing right and what are you doing wrong. Feedback can help you gain knowledge about customers’ sentiment towards your business and how can you improve what they don’t like.
ValleyBiggs is an M&A firm that offers M&A services to the customers who want to sell or buy a business. The company has a team of experienced professionals who help their customers every step along the way. The organisation offers various services including acquisition assistance, exit strategies, business evaluations, Buy-side M&A services, Sale-side M&A services and more.
Online businesses are booming and it is a perfect time for anyone to buy an online business. Buying an online business can be a very difficult task. If you don’t know where to look for online businesses that are for sale, the whole task can become very complicated. Therefore it’s important for you to know where you can find an online business ready for sale. Here are some ways you can find an online business for sale:
1. Contact Directly: You can contact online business owners directly and check if they are interested or willing to sell their business. When going for this option, you should conduct thorough research about the owner as well as business, before contacting them. You can also use tools like Alexa, Ahrefs and SEMrush to gain knowledge about the state of the business.
2. Marketplaces: Marketplaces connect online business sellers and buyers. Sellers list their business on online marketplace. Some marketplaces such as Shopify Exchange, Empire Flippers, help facilitate the payment process and administrative switch over of businesses.
3. Auction Sites: Auction sites allow buyers to bid on an online business. Using this platform, you can a business for the prices what you’ve never expected. There is a risk with buying an online business from an auction sites as anything you know about the business is the information that has been listed by the sellers.
4. Brokerage Firms: It is a much more personalized and individualized experience than a marketplace or an auction site, when you buy an online business through an M&A firm or a brokerage firm. They are professional with a large database of sellers and promote selling of businesses that are legal.
ValleyBiggs is a reputable M&A firm that holds a team of highly skilled and talented business brokers, who render top class services of buying and selling businesses. They have purchased, managed and sold their own online businesses and have accumulated not only a wealth of knowledge, but also a network of professionals to help them with every step of the sale. Besides this, the company also provides turnaround consulting for businesses that are struggling.
Selling an online business within a reasonable time period is a difficult task. It is important that sellers don’t let frustration get in their way. As most business owners are not experienced in selling a business, they will make mistakes along the way. Here are some mistakes or pitfalls you should avoid while selling your business:
1. Insufficient Preparation: It is one of the most common mistakes that sellers make when selling their business. You should always have documents regarding the company especially financial documents, ready with you as most buyers ask to take a look at them before closing the deal. You should also have a reputed financial consultancy audit your company before you put your business up for sale.
2. Not Hiring A Brokerage Or M&A Firm: Many sellers don’t hire a brokerage or M&A firm, so that they don’t have to pay the extra money. However it has been noticed that hiring such firms usually results in sellers getting more price than they initially asked for. Such firms take care of everything ranging from preparation, showing the business to potential buyers, marketing and negotiation.
3. Don’t overprice: Inexperienced sellers usually have a habit of setting a price higher than the actual value of the business. This is especially because the seller thinks that emotional investment equals more prices as well, which is not the case. Sellers should themselves or hire a professional to evaluate the business and set the price accordingly.
4. Breaching Confidentiality: Confidentiality is a very important factor when it comes to any kind of deal. If even a word gets out that your business is on sale, it could adversely affect sales and your relationship with your staff. Hiring a good brokerage or M&A firm ensures that your business is marketed for sale, while at the same time, maintaining confidentiality.
5. Hands-off Approach: Many sellers think that if they have assigned th an M&A firm they have nothing to do with the selling process. You should always be proactive in the selling process as you have the knowledge regarding the business that an M&A firm don’t have. You can also assist the firm in marketing the business without interfering with their procedure.
ValleyBiggs is one of the most sought after names in the mergers and acquisition industry for providing top-notch quality services of buying and selling business at the most competitive prices. They have been in this industry for years and so far have helped a huge number of individuals in earning a great deal for any business they wish to buy or sell.
Buying an online business is not only the beginning of an exciting new venture but also boosts your growth strategy and profit as well. It requires time, ample research and money. You need to pay a very close attention to details before buying a business. Even if a deal sounds good on paper, there may be some things that might go wrong, especially after buying the business. Here are 5 red flags you should watch when buying an online business:
1. Withholding Owner: While most owners will reveal business information but they might downplay valuable business-related information. It is also important to know what the owner plans to do after selling the business, as the owner might be considering opening a business competitive to the one you’re buying.
2. Failing Equipment: Replacing or repairing faulty or failing equipment is a difficult and expensive task. You should make sure that every equipment is in working business. You should also make sure that the business owns the furniture and equipment outright and it is not leased equipment.
3. Financial Inconsistencies in the Records: You should check if the owner has had the business audited by a reputable CPA firm. If the owner says that he had the business audited by someone he knows, it should be a big no-no for you. You should ensure that the business has a clean financial record and you can also have another CPA firm audit the business.
4. Taxes: It’s critical to review business taxes before buying a business and make sure that the owner is up to date with taxes. You should check especially for sales tax with small businesses, as they might undervalue their income to pay less tax. If the taxes aren’t properly paid, you will be held responsible for it after you buy the business.
5. Debts: If an owner has outstanding debts, make sure that he pays them before you buy the business. Debt collectors can get messy and you don’t want to get involved in that hassle.
When looking to buy a business, you should contact ValleyBiggs as it will help you go through the process smoothly and hassle free. The company has a team of skilled professionals with years of experience under their belt who
Buying a business is an exciting, but a complicated venture. For a smooth and prosperous acquisition and transition, you need to make the right decisions when buying a business. You should do your homework and research before buying a business. If you are aware of what mistakes buyers often make, you can avoid potential financial and interpersonal difficulties within the company later on. Here are some mistakes, you should avoid when buying a business:
1. Buying the Wrong Business: When buying a business, you should look for a business that suits your skills, knowledge, interests, and personality, or the business might not be successful. Choosing to buy a wrong business might result in a lot of frustration, failure and debt.
2. Not Knowing Why The Business Is Being Sold: Owners might say that they are selling because they might be retiring or they want to move onto another venture. However that might not always be the case, the business might be on sale because of tough competition, low ROI or more. You should find out the right reason before buying the business as it will be a big factor in the future of the business.
3. Ignoring Company Image and Culture: Businesses have an established image and culture that helps reflect their values and what they are. Clients are familiar with company image and culture, and changing it drastically might turn them away from the business. Altering the company culture can disturb flow and communication between employees and management.
4. Not Knowing The Value Of The Business: Before buying the business, you should participate in a detailed financial analysis of the business you want to buy. To determine the value of the business, you should review statements, balance sheets, key assets, contingent and actual liabilities, and cash flow statements.
5. Signing Any Document in Your Name: You should not put contracts, loan agreements, or the lease on your name or sign any document on your name. For any paperwork purposes, you need to have or set up a corporation or LLC to buy the business. This will protect your personal assets from the risks of the business.
The buying process can be confusing, especially if you’ve never did it before. If you want buy a business, contact ValleyBiggs, an M&A firm whose team of expert professionals helps you at each and every step of the process. Besides assisting in the buying process, the company also offers various services including acquisition assistance, exit strategies, SALE-SIDE M&A services, business evaluations and many more.
