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@ThomasSmale Thomas Smale #DCBKK
How to Avoid Seller Mistakes and Increase Your Business Value
What Are We Going to Learn?
@ThomasSmale Thomas Smale #DCBKK
What Makes a Business Sellable
What Do Buyers Want?
Increase Value BEFORE Selling
Avoid Common Mistakes
Thomas who?
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
95%
What Buyers Want
• Amazon affiliate blogs
• Adsense/other affiliate sites
• Amazon FBA store
• E-commerce store
• SaaS products
In Demand Business Models
@ThomasSmale Thomas Smale #DCBKK
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
Learn From Others
Private and Confidential
Dog Food
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
Sold For?
$450-500k
• Growing businesses sell for a premium
• Let go emotionally
Time it Right
@ThomasSmale Thomas Smale #DCBKK
Subscription Box
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
Sold For?
$1.3-$1.5m
SEO Audit Tool
@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
Sold For?
$1.2-1.4m
What’s it Worth?
SDE = Seller Discretionary
Earnings
@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
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
Free e-course:http://feinternational.com/dcbkk-2016
Slides: http://www.slideshare.net/ThomasS
male/
@ThomasSmale Thomas Smale #DCBKK