Thomas Smale Speaking at DCBKK 2016 in Bangkok, Thailand
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Transcript of Thomas Smale Speaking at DCBKK 2016 in Bangkok, Thailand
![Page 1: Thomas Smale Speaking at DCBKK 2016 in Bangkok, Thailand](https://reader030.fdocuments.in/reader030/viewer/2022032711/587e89ba1a28ab672b8b4641/html5/thumbnails/1.jpg)
@ThomasSmale Thomas Smale #DCBKK
How to Avoid Seller Mistakes and Increase Your Business Value
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What Are We Going to Learn?
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@ThomasSmale Thomas Smale #DCBKK
What Makes a Business Sellable
What Do Buyers Want?
Increase Value BEFORE Selling
Avoid Common Mistakes
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Thomas who?
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2010 2016
Launched 2010 400 deals Over $60M in sales 80% YoY growth Team of 22 100% self-funded
@ThomasSmale Thomas Smale #DCBKK
FE International History
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95%
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What Buyers Want
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• Amazon affiliate blogs
• Adsense/other affiliate sites
• Amazon FBA store
• E-commerce store
• SaaS products
In Demand Business Models
@ThomasSmale Thomas Smale #DCBKK
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Site 1$2M
Site 3$225K
Site 2$680K
Lessons From Successful Sales
@ThomasSmale Thomas Smale #DCBKK
• Sold at the right time
• Evergreen content/niche
• Consistent growth
• Outsourced content/basic tasks
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Learn From Others
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Private and Confidential
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Dog Food
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Dog Owners Spend Money
@ThomasSmale Thomas Smale #DCBKK
• Authority blog
• Used a pen name
• Weekly outsourced post
• Eventually outsourced SEO
• $143,000 annual net profit
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Sold For?
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$450-500k
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• Growing businesses sell for a premium
• Let go emotionally
Time it Right
@ThomasSmale Thomas Smale #DCBKK
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Subscription Box
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Hundreds of Possible Businesses
@ThomasSmale Thomas Smale #DCBKK
• E-commerce store
• Recurring monthly subscriptions
• Yoga niche
• All third-party fulfilment
• Everything had systems and processes
• $423,000 net profit
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Sold For?
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$1.3-$1.5m
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SEO Audit Tool
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@ThomasSmale Thomas Smale #DCBKK
SEO Audits
• SaaS
• Dedicated customer service rep reduced churn
• Multiple features on big sites
• B2B and B2C
• 8% customer churn
• $240,000 net profit
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Sold For?
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$1.2-1.4m
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What’s it Worth?
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SDE = Seller Discretionary
Earnings
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@ThomasSmale Thomas Smale #DCBKK
FE International Valuation Model
• Proprietary data
• Data from 400 deals, over 20,000 data points
• Multiple of seller discretionary earnings (SDE)
• SaaS: 3-6x annual SDE
• Content: 2-4x annual SDE
• E-commerce: 2-4x annual SDE
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Key Takeaways
@ThomasSmale Thomas Smale #DCBKK
• Sell while it is still growing
• Recurring income attracts a premium
• Outsource as much as you can
• Document your financials
• Don’t be reliant on yourself
• Valuations cannot be automated, get one free
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Free e-course:http://feinternational.com/dcbkk-2016
Slides: http://www.slideshare.net/ThomasS
male/
@ThomasSmale Thomas Smale #DCBKK