Mobile Games Studio – Website Closers

Mobile games have a large market share, generating $92 billion in revenue, according to statistics released by Newzoo. With most people owning mobile phones, operating in the mobile games industry brings huge opportunities. This includes devs studios looking to exit through a merger game studio or selling digital game agency.

Take a look at this case study about a gaming studio we helped sell if you’re looking for a partner to grow your company or an exit strategy gaming agency.

Mobile Games Studio

Today’s case study focuses on the game studio acquisition of Evil Studios Limited by a private business buyer. Formed in 2013, the company that has been operating for more than a decade is behind the Cards Against Humanity-inspired game Evil Apples.

The co-owners initially started with juvenile games and set their sights on mature humor when they saw its potential in mobile app stores. Their flagship game, Evil Apples, held the #1 spot globally in both the Word and Card Game categories on the App Store.

After selling indie game studio, one of the co-founders stepped back from the daily management role and stayed with the company in an advisory role as a member of the Board of Directors.

The Challenge Selling Mobile Games Studio

A lot of games on the app stores are suitable for all ages, but due to the nature of the content of Evil Studios Limited, their flagship game was restricted to players 17 years of age and above. 

When selling your mobile games studio business, this kind of limitation can impact your video game company valuation. However, you can turn things around by showing that despite being geared toward mature audiences, you have strategies in place to keep the ball rolling and remain profitable.

The company also had no traditional marketing plan in place when they were selling game development firm. In some cases, the absence of a marketing strategy might turn off buyers. Others would see it as a means to decrease the selling price of the company for sale. The good thing about Evil Studios Limited is that the devs included viral mechanics that allow players to bring friends in for free gameplay, or opt to pay for access to random opponents.

Mobile Games Studio Buyer

A private buyer is now handling the operations after the co-founders were able to sell game dev firm. Wondering about which strengths were highlighted by our mobile games studio business broker? Take a look at these points:

• The company was especially appealing to mobile games studio potential buyers due to its low operational demands and strong organic growth. With the previous owners only dedicating about three hours per week to managing the business, it demonstrated a high level of automation and efficiency. A substantial portion of the owners’ weekly efforts has been focused on creating and developing new mobile games to expand their customer offerings. In other words, the business was built in a way that the owner only steps in for major game design and business development decisions.
• Part of what makes the operations automated is the company’s remote workers, who handle the bulk of the development and customer service tasks.
• The game’s user base remains highly engaged, and its built-in viral loops continue to drive consistent user acquisition without any marketing costs, making it both low-maintenance and cost-effective to scale.

Preparing to Sell Mobile Games Studio

When you work with game dev M&A advisors who know how to sell mobile games studio and have expertise in mobile game company mergers and acquisitions, you’re in good hands. With an expert appraiser, you have the assurance that your gaming business valuation follows standard methodologies and takes into account multipliers that change based on the state of the market.

During the valuation for gaming agency, mobile games studio business brokers will typically multiply the monthly revenue by multipliers ranging from 12 to 48. This will increase or decrease depending on factors such as churn rate, growth rate, and revenue stability. 

Once the value has been determined, the broker will look at areas of improvement and suggest ways to improve operations and cut costs to achieve a higher valuation. This is where the brokers bring their expertise in. Since they’re aware of how the industry works, their suggestions will be indispensable for mobile games studio due diligence preparation.

The initial mobile game development company sale process is similar to preparing any other business for sale, with the primary difference being the key performance indicators (KPIs) that brokers evaluate.

Selling Process

Finding the right buyer for a mobile games studio is the first step once the owner has obtained information about how much the mobile gaming dev company business worth is.

As part of our marketing efforts to find gaming company buyers, we listed the company for sale on our directory of businesses for sale. In it, we highlighted the following aspects of this mobile games studio sales process:

• New products are driving increased profitability for the company.

• Opportunities for rapid scaling include:
  • Translating games into various languages for international markets.
  • Developing new game content.
  • Exploring innovative ways to engage users

• Growing public demand for mobile app-based games positions the brand for significant revenue growth.

Buy or sell game dev companies is what we do here at WebsiteClosers. In other words, we were able to connect Evil Studios Limited with a mobile games studio potential buyer. The company received many purchase offers, and most prospects were willing to pay the dev studio’s asking price. We presented the game dev company’s business plan, which emphasized the strong appeal of inventive and challenging game experiences.

The company entered the due diligence phase. In general, when you sell a mobile game business, these are the KPIs reviewed in the process:

• Performance Assessment. KPIs evaluate the success of games and strategies, pinpointing effective elements and areas needing refinement.
• Financial Stability. Tracking metrics like ARPU and CAC ensures the business remains financially viable and sustainable.
• Player Engagement. Metrics such as MAU and Retention Rate gauge game appeal and reveal opportunities for improvement.
• Competitive Positioning. Monitoring industry KPIs helps compare performance against rivals, maintaining market relevance.
• Strategic Growth. KPIs support long-term planning by aligning game development metrics with business goals for a clear path to success.

The deal was successfully closed to a private buyer. What started as a passion for the co-owners is now an established game studio. The decision to sell game development company was worth it, and after the sale, it’s ready to tackle new growth opportunities.

Result for Buy-side and Sell-side

The deal facilitated by our game dev business broker on the sell side and two brokers on the buy side successfully came to a close. The seller was able to close the deal around the asking price and is confident that the new owners will carry on and amplify the remarkable legacy of this gaming brand. For confidentiality, details regarding the buyer and the final price won’t be revealed. 

Are you looking to sell your mobile games studio business? Choose the best broker for selling game studio. At WebsiteClosers, we’ve sold companies that mainly operate online. We follow industry trends and know the best KPIs to look at during valuations to achieve a calculation that truly reflects your company’s value. Call today and see how we can help you sell game design firm.