Looking to make an exit from your online business? Are you tired of running the business you built from the ground up? Code 9 Media, Inc. is currently looking to purchase established online businesses that have organic, paid, mobile, social or other quality forms of traffic. If you have an interest in selling your online business, please fill out free website valuation form.
In addition, if your site does not fit into our plans, Code 9 Media, Inc. has a large network of website and mobile app brokers that we will specifically match your business with in order to give you the best chance for the highest selling price. We have a solution to sell your site no matter how large or small.
Valuation of your online business
Our valuation process is simple and based on various elements of your business. We start with a basic multiplier of 2x annual profit. From there, we can adjust based on various factors such as:
- Traffic Source(s) – SEO, PPC, Social, Mobile, Email
- Number of Traffic Sources
- Types of Revenue – Adsense, CPL, CPA, CPI, Digital Products, etc
- Number of Types of Revenue
- Age of Business
- Strength of Brand
- Barriers of Entry
- Potential For Growth After Sale
- Transition of Revenue Sources
- Potential Contractual Conflicts
- Other Industry Specific Factors
Based on the information above, your multiples will be adjusted up or down for each individual factor. For example, an online business that is solely dependent on Google organic traffic could have their multiplier deducted from because of the volatility, however, Strength of Brand and Email traffic would add positive adjustments to the multiplier. In the end, the goal is a price that both parties can be happy with and the initial valuation is a starting point.
Click here for a free valuation of your online business – Free valuation of your online business
Start by filling out our free online business valuation form and we will get back to you with some initial questions to get your valuation. It is highly recommended that you prepare a due diligence folder that has information on your business that is easily organized and readily available via an online storage area such as Dropbox.com.
Here is a very short list of information you will be expected to share with Code 9 Media, Inc or any other potential buyer/broker.
Due Diligence List
Initial Discovery Period
- Access to Google Analytics or another analytics software to prove traffic
- Access to revenue source reporting to verify revenue
- Domain owner verification
- Understanding reasons for exit
- Others TBD
Advanced Due Diligence(upon Letter of Intent to purchase)
- Access to 3rd party documents
- Access to historical documents – past 3 years of income statements(if applicable)
- Content Analysis – verification of ownership and licensing
- Digital Product analysis(if applicable)
- Proof of ownership of all social accounts
- Account logins information for all application accounts
- Signed NDA on behalf of the purchaser to protect seller
- Others TBD
As mentioned above, this is a basic list to give the seller an idea of what to expect. After initial negotiation of price is completed, a Letter of Intent will be signed by both parties indicating the purchase price and the expected closing date. This is a non-binding agreement. Once due diligence is completed, an Asset Purchase Agreement is used to document the full terms of sale and completes the transaction upon the closing date.
Escrow.com is the preferred method of managing the process to completion. All assets are held in escrow until both parties approve and the assets are released completing the sale.