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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.

Selling an internet business is not an easy task. It requires a lot of skills as the processes keep on changing every day with the change in the trends. For entrepreneurs who are planning to put their website on sale, it’s important for them to find experienced business brokers, who are familiar about the ins and outs of the process.

There are many things to keep in mind when selling a website such as

  • Website valuation
  • The current marketplace
  • How others are faring
  • Maintaining confidentiality
  • Evaluating the business, g
  • Getting banks on board and finding vetting buyers
  • Troubleshooting the inevitable issues
  • Developing a profitable etrategy
  • Organizing whatever help is necessary including tax, due diligence, accounting and legal help; and much more

It’s imperative to find business brokers who have years of quality experience in the industry of selling a website. The finest internet business broker will list dozens of testimonials from clients who are happy with their guidance and leadership during their own selling a website process, and the internet business broker should also work from a standpoint of not taking any commission until the client’s website has been sold. This ensures hard work on their behalf as well as the most profitable exit strategy possible. How do they handle website valuations? They should take into consideration many items, not just the deal multiple to come up with a fair number.

ValleyBiggs is one of the renowned internet business brokers in the USA that excels at selling a website. They have an outstanding team of highly skilled and talented business brokers, who combine their rich knowledge and deep expertise to meet the needs of their customers. In addition to selling websites, they also help clients in purchasing businesses, business valuation, tax and succession planning, and much more.

There are many people who want to start their own business rather instead of working for someone else. However, starting a new business is no easy task as it comes with its own set of challenges and setbacks. It takes courage, determination, dedication, consistency, and of course a good amount of money to succeed. There are business owners who say that starting a new business is a gamble as there is no guarantee that the business will succeed. Let’s take a look at the most common business challenges every small business struggles with:

Securing Capital

Raising capital and getting loans from financial institutions is one of the main challenges that every new business owner faces during the early stages of their business development. This is due to an inherent hesitation among majority of potential investors when it comes to investing their money in new businesses.

Managing Stress

Running a business is filled with more challenges than celebrations. There are a lot of things in your business that can keep you up at night, including debt, drop in sales, issues with employees, legal notices, and more. All these issues can greatly affect your decision-making abilities.

Building the Right Team

A team is the lifeline of the company and can make or break an organization. Building the right team is one of the most critical tasks that you need to accomplish as a new entrepreneur. Many new entrepreneurs fail to hire the right candidate for their jobs due to lack of experience, and it often becomes the biggest challenge for them.

Competition

There is competition in almost every sector, and to beat it you must start something that is truly unique and extremely cost-effective. As a beginner, you’d have to face intense competition in your domain, but there is no point getting scared and dropping the whole idea and jumping onto another domain.

Work-Life Balance

Owning a new business comes with the pressure of achieving a well- balanced work and family or personal life. Unfortunately, there are many entrepreneurs who fail to forge this balance and it ultimately affects their health.

However, these are only the initial setbacks and can be dealt with hard work and proper planning. If your business idea is creative, innovative and robust, you will be successful.

Are you an entrepreneur in need of M&A advisory services? Are you interested in employing the assistance of a reliable and reputable acquisitions and mergers business broker? Call ValleyBiggs.com – the website business brokerage firm, today at 800-980-4145 to set up a free consultation.

This press release is to announce to readers that Valleybiggs.com assists clients in their tax and succession planning.

A leading mergers and acquisitions advisory services provider, ValleyBiggs.com, offers tax and succession planning services helping business owners make a smooth transition and minimize any negative effects of their departure on the company. The tax and succession planning services they offer can be customized around individuals’ needs and budget. They are able to offer tax and succession planning for businesses at any stage in the cycle. With an outstanding team of attorneys, and tax & deal experts, the company has helped a huge number of business owners who were looking for the best tax and succession planning services. Anyone looking for a reliable tax and succession planning service can contact ValleyBiggs.

A representative of acquisitions and mergers broker, ValleyBiggs, talked about their tax and succession planning services, “Integrating a broad-based knowledge of tax, business, and sophisticated estate planning & asset protection techniques, along with business and entrepreneurial insight, our team of experts are uniquely qualified to help provide succession planning for companies at any stage in the cycle, especially during the transition to new ownership. Together with our team of experts, we provide comprehensive and wide-ranging representation, always with an eye on the future and helping our clients understand what it will take to get there, many times including the sensitive, but inherent, intergenerational conflicts that may arise on the way.”

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