| Is this Online business for sale a classic tale of success? The business started online in 2002; the right time to see the rapid growth of hopeful webpreneurs. 2003 was the year when ecommerce, for mom and pop websites, kicked into high gear. No looking back, until growth slowed in the past two years. Double digit growth rates are a thing of the past for most product sales sites.Although, the seller of this business states 20% growth is achievable. I really doubt that statement. More like “it has been double digit in the past so I predict the future is double digit”.This site might be a rare exception, but not likely. Not wise as the buyer to model your growth from historical results without looking much deeper. Check metrics like Google Trends and Google Insight. Investigate visitor traffic patterns. Confirm the 40,000 email list has less than 10% bounces.
…and about the 5.7 asking price multiple? Probably they figured how much they needed for retirement; and that became the Asking Price. Quick analysis, 2.4 would seem to be fairly valued. Including with the FF&E plus inventory. |
