Valuing an Internet Business - that old chestnut
Discussion
Been helping a friend out who has an investor interested in his business; both see big potential in building out from where he is at the moment - for which it'll need investment.
Investor wants a minority stake (prob ~10%, maybe a bit more), and brings good contacts and experience into the mix.
Background is; business always in profit and with 6-figure turnover for last 7 years. Website traffic is several Million annually.
So how do they value the business? Any common rules-of-thumb?
I know, I know; how long is a kettle of fish? how many Instagrams? etc. but any pointers as to where to start negotiations would be very much appreciated. Thanks in advance for any input.
Investor wants a minority stake (prob ~10%, maybe a bit more), and brings good contacts and experience into the mix.
Background is; business always in profit and with 6-figure turnover for last 7 years. Website traffic is several Million annually.
So how do they value the business? Any common rules-of-thumb?
I know, I know; how long is a kettle of fish? how many Instagrams? etc. but any pointers as to where to start negotiations would be very much appreciated. Thanks in advance for any input.
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