There are a wide variety of companies that fall into the “eCommerce” category and this is one of our specialties at this firm. We lump eCommerce and Amazon together into one category because Amazon is the 500lb gorilla in this space. The vast majority of eCommerce companies have some level of sales on Amazon.
As e-commerce business owners ourselves, we take a personal, special interest in helping you sell your business. We understand the impact these decisions have on your family which is why our goal is to enable you to make smart, calculated moves, and guide you through each step of the process.
There are two primary sales channels for eCommerce brand owners. The first and by far the largest is Amazon.com. With roughly 70% of all consumer product searches starting on that platform, and roughly half of all online sales occurring there, it is by far the primary sales channel for the vast majority of eCommerce retailers.
Besides Amazon, there are some sellers that still operate primarily on their own customer-facing website (or a series of websites). Traffic to these sites can come from a number of platforms, including Google (organic and PPC), affiliate marketing and social media. For companies that can build a brand using both their website and Amazon as channels, they tend to be sought after companies because their channel concentration is reduced.
Additionally, brands that build up their presence on social media through influencers and PPC can also drive up the value of their companies by building not just a presence on Amazon, but also by building an actual brand that can be followed by consumers.
Some of the factors buyers look for in an eCommerce brand include channel or SKU concentration, growth rate, domestic vs international sales, category, multiple brands, number of SKUs, stickiness of customers (recurring revenue), subscription models and more. All of these attributes are reviewed when valuing a business.
No two companies are the same. Please contact us to learn more about the value of your particular company. We’ve sold over 1,600 companies to date, valued at just shy of $1 Billion – we have the experience and background to help you maximize your deal value.
Besides eCommerce companies that operate on websites and domains, we also sell websites and/or domains themselves. The value of a premium domain is not always the easiest asset value to peg – even for us and we’ve sold many, many domains in our history.
In essence, a domain name is generally as valuable as the buyer perceives it due to their need to use it for his/her business. Whether an exact match domain or a short word domain, we have a team of professionals that can review historical sales for other domains that have sold in similar verticals and/or have similarities as it relates to demographic, level of available traffic, etc. We can help build an exit strategy around a premium domain and take it to the broader market and/or market it to strategic buyers that might have a very particular interest in the traffic generated by the domain, now or after it’s bolted onto the suitor’s business.
Websites as a category is a very broad selection of businesses. While Amazon has certainly become the bread and butter marketplace for the sale of most consumer products, websites can be used for much more than just consumer products listings. A website can be a B2B retailer or wholesaler, selling products direct to other businesses. A website could be an affiliate website that pushes traffic to other websites for a conversion commission. A website might also be a service-based site, like an SEO firm or an accounting agency.
A website might also be a dating platform. There are hundreds of variations of models of websites, some unique, some not. Each of them have their own value propositions and must be valued based in a light most favorable to our client. We’ve seen just about every variation of website available, so please contact us to learn more about the value of your website.
We invite you to contact us to learn more about the value of your particular website and/or domain.
While this is a very large categorization of any business that operates in the digital, online or internet space, it can also include companies that have created proprietary and/or patented products, software companies, VOIP operators, managed service providers, SEO companies, Tech-enabled products and services, internet of Things consumer products, patent portfolios and much more.
We have represented all of the above companies and many more in what could broadly be identified as “technology” centric. In our minds, a tech company is one where the company itself holds a particular piece of technology that is an asset that can be sold, and perhaps that asset is used to generate revenue.
A tech company can also be one where the human capital (including ownership) behind the deal are tech-savvy (think programmers, SEO specialists, Online Patent Companies, etc.) and necessary for the business to operate. And the quintessence tech company would be Software as a Service (SaaS) companies whereby a company sells a software tool to a consumer or business that is paid for monthly, quarterly or annually, resulting in highly valuable recurring revenue.
Technology company valuations require a very particular professional examination with specific experience in the sector. An expert that understands and can see the value of a company based on its potential, and not just its bottom line, is paramount. For many tech companies, operating profits may be low or non-existent, but the value of the company is so much more in terms of customer contracts, recurring revenue, the cost of a strategic to build the technology on its own, and much more.
We invite you to contact us and we’ll put a team of intermediaries on your project to provide a valuation that properly takes into account the hard work and dedication it has taken to get the business where it is today – and for us – we take great pride and honor in selling exciting technology companies that represent the wave of the future.
Business services companies tend to be those that provide some level of services and/or support for other businesses. Examples of Business services companies include management services, Software as a Service, online consulting & training, financing services and payment processes (e.g., PayPal), travel services, eLearning, marketing firms (SEO, Paid Media, Social Media, etc.), distribution and supply chain, freelance sites, graphic design, business coaching, VOIP and Telephones, IT support and so much more.
Business services have their own set of criteria when it comes to valuation. These tend to be highly sought after companies because they don’t usually require any inventory management (thus no large warehouses or logistics overhead) and they tend to have high margins and recurring revenue.
Business service companies in the digital space tend to trade at higher multiples due to the fact that they don’t normally interact with consumers (a big plus in the eyes of many entrepreneurs), they have low overhead requirements, they are highly scalable, usually have contracts in place (thus a history of churn rate and lifetime value (LTV)) as well as recurring revenue. If the company is high growth, multiples can exceed most of the other types of businesses we sell due to the massive demand we see in our buyer pool.
Since we run business services companies ourselves, we feed our families the same way that our B2B clients do – and thus – we know the intricacies of the operation to find all the value propositions in a business, giving us the opportunity to maximize the deal value out in the marketplace. We invite you to contact us to learn more about the value of your business service company.
An internet business can be any business that primarily derives its revenue from the traffic on its site. It is a very large category of businesses. While eCommerce and Amazon retail tends to get the most attention as it relates to internet businesses as a category, we have represented so many other companies that fall under this title.
Those companies include affiliate marketers, apps (and app developers), business coaches, clothing design and print companies, web design and development, freelance work, voiceover IP services, eLearning and online courses, writing, copywriting and authoring services, tutoring, coding schools, blogging, advertisers and publishers, paid media service providers, influencers, photographers, registrars, SaaS, IaaS and PaaS companies, social media management, tutoring, virtual assistance, YouTube celebrities, online auctions, multi-level marketing, stock market trading, crowdfunding, educational and content websites, press releases, banking, finance and so much more.
Virtually everything we do in the modern world interacts with the World Wide Web in some way, and we are there to identify the assets and value them for owners. There are hundreds of variations of models of online companies, some unique, some not. Each of them have their own value propositions and must be valued based in a light most favorable to our client.
We’ve seen just about every variation of internet Company available, and since we run internet businesses ourselves, we feed our families the same way that our internet company clients do – and thus – we know the intricacies of the operation to find all the value propositions in a business, giving us the opportunity to maximize the deal value out in the marketplace.
We have over 800,000 interested parties in our buyer pool. They are all looking for opportunities to acquire a business that they can own and operate. Some are looking to use the acquisition as their vehicle to leave the corporate world and embark on an exciting new career of entrepreneurism. Others are already out there moving and shaking and looking to bolt on to what they already have. We work hard with buyers going through our process to help them obtain lending to acquire our clients’ businesses.
We feel like this part of the process is the key – using other people’s money can help a buyer keep more money in their own accounts to deal with the ups and down that occur in business, and be better situated to help growth the company through additional investments … rather than sinking everything they have into the business only to get into trouble down the road.
Over 75% of the deals we work on every day are being financed (or having debt providers involved), so we definitely understand the value that comes with knowing who lends in this space, and connecting them to our buyer pool when the time is right. This inevitably helps our clients by driving up value multiples (since those who use other people’s money tend to be more willing to negotiate) and finding more success in the process since so many more people are involved in the closing process (buyer, seller, due diligence experts, banks, underwriters, third party evaluators, CPAs and more).
We invite you to contact us to learn more about the value of your particular internet business.
IT Services and Solutions companies are those that provide a wide range of services to businesses and consumers alike. As they say, every software company is an IT company, but every IT company is not a software company. Information technology companies provide a foundation for businesses of all shapes and sizes to conduct daily internet-related operations, enhance company communications, increase workplace productivity, and provide a layer of security for confidential data.
Apart from providing consulting services on a company’s IT needs, an IT outsourcing company can estimate, manage, implement, deploy, and administer IT systems on a company’s behalf. This range of service can include Network installation and deployment, onsite and offsite maintenance and support, web and email hosting, login security and protocol management, VOIP and telephones, employee training on installed IT systems, hardware sales and installation, server upgrades and desktop support.
Some IT solution providers due to all of these things, others just focus on one or others. Throughout the last 20 years, there has been a lot of consolidation in the MSP and IT Solutions arena and we have sold a large number of these companies all around the globe. If you own and operate an IT Company, we highly recommend that you approach us as soon as possible when you’re thinking about an exit so that we can begin the valuation process for an exit, place benchmark dates in place for when we will begin the exit strategy an ensure that all possible financial and operational facets of the company are discussed and optimized before we go to market.
Please contact us to learn more about the valuation range of your particular IT Company.
Our clients in the web development space design, create, host and/or maintain websites and web applications for online and traditional businesses across the globe. Since virtually every business in the world needs a website and/or app, web design and development firms are in very high demand and we’ve sold a large number of those that have come on the market.
Software has pervaded our society; the software development industry rapidly expanded in the 1970s and has now become a mammoth industry grossing over $500 Billion. In today’s modern world, virtually all products (consumer or otherwise) that use DC or AC electricity, have software, either embedded to make it “intelligent,” or installed like programs in mobile devices and computers. Building software starts with identifying a need, designing the program, and testing it for issues.
While some of our clients may focus on a particular aspect of software production (like front end or back end design), others take on general software projects. A software product is a program, or a collection of programs that have been coded by programmers to do something that may be of use to potential customers. A software company often produces multiple products that perform complimentary functions. They are termed ‘companion products’, and together they form a suite. This creation is a digital solution to everyday problems. Software development companies also build business management tools, corporate systems and design websites. Some dev teams build corporate web-based systems to help enterprises automate processes, increase productivity, and facilitate workflow management. Some also provide technical insights.
A great software company provides solutions that bring real value. Our job is to identify the value created by our clients’ development business and harness that to create a scenario where the business is sold for the very highest multiple possible. Valuing a web and software design and development firm is much different than many other valuations in the technology and internet space. With our considerable experience in the internet sector, we encourage our clients to open their businesses to us as early on as possible so that we can work alongside our clients to push the value of their company as high as possible on exit.
Please contact us to learn more about the valuation of your particular business.
There is a large variety of digital advertising and marketing companies operating around the globe. We’ve sold a number of different business models in this space. They range from SEO, SEM, PPC to SMO and other paid media companies. digital advertising, also called internet advertising is when businesses leverage internet technologies to deliver promotional advertisements to consumers. digital advertising includes promotional advertisements and messages delivered through email, social media, online ads on search engines, banner ads on mobile or websites and affiliates programs.
Today, digital marketing is a whole different field than it was 10 years ago. It’s now highly driven by data and accelerated through targeted brand promotion through various technology tools. While the umbrella term, “digital marketing,” can include mobile apps, podcasts and other forms of digital media, the internet is the center of all tools and channels at a digital marketer’s disposal and this has tended to change rapidly over the years. A digital marketing agency is different from your traditional marketing agency in that they are typically focused on results-based marketing in the digital world. Measurable marketing and ROI is the name of the game.
A legitimate digital marketing agency doesn’t practice “spray and pray” marketing. Gone are the radio or TV spots and magazine ads. In their place comes a team of strategists, consultants, creatives, and developers that work together from the ground up to deliver quantifiable results.
A digital marketing agency is a brand-development and lead-generating engine. And because of this, digital marketing is at the heart of most company’s advertising plans, making digital advertising and marketing companies highly valuable if positioned correctly during the exit process.
Not only have we sold a large number of companies that fall into this category, we also use them every day for our own digital companies. We own and operate a large number of technology and internet companies, and through this ownership, we have built relationships with some of the largest players in the paid media and SEO space. Because of this, we are in a great position to represent clients in this space not just in the marketplace, but also to debt and equity providers in the background of an M&A deal who may need some inside analysis of a company during the diligence process at the board or steering committee level.
Our experience in the technology space and the fact that we’re a boutique firm focused solely on the tech and internet space allows us to proudly represent clients in this category with a high level of knowledge of the businesses we represent.
Please contact us today to discuss your particular business model so that we can identify a value range for your business, and create an exit plan that meets with your objectives.
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