How Much Is Your Online Business Worth?

How Much Is Your Online Business Worth?

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 Online Business Valuation


How to Value anOnline Business

We understand the effort that has gone into growing your online business. It’s likely that you’ve invested hard-earned cash and spent countless hours building a business. This is something that we don’t take lightly.

Our valuation method is backed by years of experience selling online businesses.

We’ve sold over 1K businesses and constantly refine how we value them to reflect the industry and what buyers/investors are after. Ultimately, our valuations follow a simple formula:

[6-12 Months’ Average Net Profit] x Multiple (Typically 20–60+)

The first part of our valuation calculation should be easy for you. If you don’t know your business’s monthly net profit, then now would be a good time to work it out.

Some brokers use annual net profit and a multiple. At Primeshops.co, we prefer to use monthly net profit. We do this as it allows for more nuanced business valuations. Monthly net profit is more telling of how your business earns money and the trajectory it’s on.

The second part of the calculation is the valuation multiple.

We’ve outlined 20x to 60x as this is the range most businesses fall into. However, it’s possible that a business is valued at a higher multiple than that.

What goes into a valuation multiple is a bit more complicated. When filling out the valuation tool you will see from the questions some of what we take into account.

What to Expect When Filling out the Valuation Tool

Filling out the valuation tool shouldn’t take more than a minute or two.

What it asks you will depend on your main monetization. There are a few things that you will need to know to answer the questions.

It can be helpful to have the following information to hand:

  • The date the business was created
  • Average monthly gross revenue and expenses
  • Average monthly unique visitors
  • How many email subscribers you have (if any)
  • Number of social media followers (if any)
  • Plus, more specific information for some businesses like number of products, downloads, revenue models, etc.

Using this information, we are able to instantly value your business.

A valuation is not necessarily the listing price you’d get if you sell on our marketplace since there are other factors our teams must consider for our buyer pool.

Why is a Valuation Important?

It’s perfectly acceptable to get a valuation for your business without wanting to sell it. 

A better understanding of how a business is valued can help you to improve the running of your business. But you might be surprised by how much your business is worth. Online businesses have become increasingly desirable and there are buyers out there willing to pay good money to get their hands on them. 

What could you do with the money?

There are many reasons why people decide to sell. Maybe you need startup capital for another investment or you want to travel around the world. Getting a valuation allows you to see how much money you can expect to get. 

Many people might not even realize they have a sellable asset. 

So why not spend a few minutes filling out our valuation tool? The figure people have in their head is sometimes different from the reality. 

This is an objective valuation that’s backed by years of marketplace experience. Knowing how much your business is worth and the valuation methods used will be valuable to you in more ways than one.

Submit your document for website valuation: primeshops.co@gmail.com

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