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

https://news.ycombinator.com/item?id=8213628

by vishalchandra • 12 years ago

9 4 12 years ago

news.ycombinator.com

Sure, it happens every day on places like Flippa, WebsiteBroker, and eBay.

It's not the sexiest process, or the highest valuations, but if you're looking to exit for 5-to-6 figures, you might be able to find a buyer there easily.

vishalchandra• 12 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.

GamblersFallacy• 12 years ago

Here are some actual sales figures:

http://feinternational.com/buy-a-website/#tabs-3

http://www.webrokr.com/soldsites.php

For sites/apps with steady traffic & earnings, the general rule of thumb for calculating valuation has been multiples of monthly net profit:

* 2002-2004: 3 to 6 x monthly net

* 2005-2012: 10 x monthly net

* 2012-2014: 20 x monthly net

* 2014: 30 x monthly net

So to flip a site for > $200k, you need to be doing approx > $7k/month.

flipfilter• 12 years ago

There are a few hundred live examples from 2013 in the Centurica website buyer reports - http://www.centurica.com/website-buyers-report.

At time of writing (August is usually quiet) there are around 300 brokered,web-based businesses for sale between $20k and $2M.

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.

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

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