Beauty Products Ecommerce Internet Business - Price Reduced.... $325,000!!!

[TrustButVerify]

If you're not on the their email list you should join

http://www.websiteproperties.com/131...s_for_sale.asp

Just got this email:

13100 - Beauty Products Ecommerce Internet Business
Price Reduced from $825,000 to $500,000

Asking:

$500,000

Gross Income:

$1,288,286

Cash Flow:

$209,360

To me it's insane that they were expecting some guy to come in at 48x monthly revenue.

What say you?

[3Six]

Who would a seller go to - a broker who says he can get 48x or one who says he can get 12x?

[benitez17]

We had a whole discussion about that site at http://experienced-people.net/forums...properties-com if you are interested. Clinton said that the owner of that site is actually able to get some of those high multiples. I wouldn't buy a site there based on what I have seen in the past, but I certainly would give him a crack at selling one of my sites.

[Clinton]

the owner of that site is actually able to get some of those high multiples

Very rarely. And I don't know how much of credit goes to him for the higher multiples. Bear in mind that this isn't the usual Flippa stuff. More established sites, long history of profits, solid assets, staff = less risk. And risk affects the multiple. That's why listed companies - which are seen as close to zero risk - have stock market valuations of 20 or 30 years' (360x).

Nobody buys for revenue, they buy for profit. But in a case like this buyers may well look at the books and see ways they can wring some cost savings and higher profits out of that $1.3 million figure. If they can see a 20% cost saving then the price of $500K is just a little more than the next 12 months' income.