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

by vishalchandra on 8/22/14, 7:48 PM with 4 comments

  • by GamblersFallacy on 8/23/14, 3:38 PM

    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.

  • by flipfilter on 8/24/14, 8:52 AM

    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.

  • by MalcolmDiggs on 8/22/14, 10:33 PM

    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.

  • by vishalchandra on 8/23/14, 11:16 AM

    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.