10b buying-and-selling-websites-jason-yelowitz

POSITIONING FOR AN EXITPreparing your website for sale, even if you don’t plan to sell.

January 2014Affiliate Summit, Las Vegas, NV

Quiet Light Brokerage, Inc

Quiet Light Brokerage, Inc. QuietLightBrokerage.com

WHY DO BUYERS BUY?

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Who Buys Websites?• Small private equity firms

• Small businesses that specialize in website acquisitions

• Individuals looking for a change in career and lifestyle

• Individuals drawing on savings, IRA’s, HELOCs, etc.

What are They Looking For?

ReturnOnInvestment


Three Pillars of Value

Ongoing Stability

3

Growth Prospects

Provability

$Value = Annual Profits x Multiple


Ongoing Stability

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Potential Points of Failure

• Reliance on SEO, Amazon, SEM, etc.• Reliance on too few vendors• Reliance on too few customers• Reliance on unsustainable business

model• Reliance on unsustainable industry• Ignorance of changing trends,

competitive landscape

Buyers see the risks owners don’t see.


Ongoing Stability

Differing Mindsets Between Buyers and Sellers• Sellers are wired to see what can go right.• Buyers are wired to see what can go wrong.• The market (what someone will pay for your

site) determines who’s correct.

5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

This is when we areusually contactedMONTHLY PROFIT


Growth Prospects

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Jun-

09

Aug-0

9

Oct-0

9

Dec-0

9

Feb-

10

Apr-1

0

Jun-

10

Aug-1

0

Oct-1

0

Dec-1

0

Feb-

11

Apr-1

1

Jun-

11

Aug-1

1

Oct-1

1$0

$5,000

$10,000

$15,000

$20,000

$25,000

Profit History of Growth

How buyers will gauge expected ROI

• 2 Year history of growth• No recent slowdown• Owner-identified areas of growth

This is the time to sell


Growth Prospects

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Plan for the uncontrollable

• Identify the natural areas of growth with the least risk

• Strategically pursue them• Be methodical with new growth

areas and plan them in sequence• Understand when you are getting to

a point where you no longer are interested in growing the company


Provability

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Demonstrable proof beats fuzzy guess work.

• Clean records• 3rd Party verification• Google Analytics• Customer data• Three years of financial history• No intermingling of businesses/personal

You have complete control over the provability of your business.


Provability

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Get Your Books in Order.

• Hire a good bookkeeper• Keep accrual vs. cash basis consistent• Keep personal data out of business records• Keep other businesses out of business

records• If you lie to the IRS, don’t expect a buyer to

take your word

Buyers will expect all this AND these strategies will help you run a better business.


Provability

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Beyond Financials, Keep Track of Key Data Points

• Conversions

• Orders/Returns

• Repeat Customers

• Renewal Rates

• Time/revenue event

• Other data that applies to your

business

www.QuietLightBrokerage.com

To discuss the value of your website:

10b buying-and-selling-websites-jason-yelowitz

Business

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