Weekly M&A: 12 Listings, News & Analysis

Weekly M&A: 12 Listings, News & Analysis

Get the inside scoop on the online business M&A industry with businesses for sale, news, and market analysis.

WebAcquisition’s DealFeed tool found 357 online businesses for sale with 21 new listings over the last 7 days, and 162 aged listings sitting on the market for too long. 157 deals had recent valuation changes. 104 deals had recent changes in multiple.

🚀 Broker Listings

We cover businesses for sale that are new, aged, or undervalued.

$4.4K/mo Cooking and Health Site (listed 5 days ago) – $186,409 valuation at a 44X multiple. This 5 year-old site earns almost all revenue from display advertising (99%) so there could be an opportunity to add affiliate links to quickly increase revenue. Includes an email list with 10K subscribers. Traffic was at 240K-300K pageviews per month in 2022. View on Empire Flippers

$17.8K/mo Outdoors, Home, Office, Children FBA Brands (reduced by $40,793) – New valuation at $569,577 at a 32X multiple. 4-year-old FBA business with $111K monthly revenue. 4 trademarked brands with 8 parent SKUs. Selling on Amazon only, so there may be an opportunity to expand to other retailers like Walmart. View on Empire Flippers

$9.4K/mo Swimming and Lifestyle FBA Brand (listed 18 days ago): $250,000 valuation at a 27X multiple. 3-year-old FBA business with $453K annual revenue and $115K annual profit (annualized). Includes an email list with 43K profiles in Klaviyo. Asking price is $250,000 plus inventory. View on Quiet Light

$4.9K/mo Men’s Health and Personal Development Site (listed 10 days ago) – $206,772 valuation at a 39X multiple. 7-year-old site earns from affiliate programs (70%) and info products (30%). Over 300 articles published with 2.5K linking domains. View on Investors Club

$1.5K/mo Lifestyle Site (listed 5 days ago) – $42,400 valuation at 29X multiple. 5-year-old site earns from Mediavine and Amazon. Currently receives about 20K visits per month which is under the Mediavine requirement. Includes Pinterest account with 12.8K followers. Over 200 articles published on an expired domain with 9.7K linking domains. View on Motion Invest

$1.5K/mo Hair Style Site (reduced by $4,530) – New valuation at $49,790 valuation at a 32X multiple. This 3 year-old site earns through Amazon and Mediavine. Over 700 articles published and traffic has been trending higher since the start of 2022. Over 70K pageviews in each of the last 3 months. View on Motion Invest

🤞 Auction & Off-Market

We cover listings where more “effort” is needed since there is no prospectus. You need to bid and/or ask questions to obtain data.

$850/mo Poultry Site: 21-year-old site earning via affiliate only. 1K linking domains. All content written by an expert in the niche (4th generation poultry keeper). A setback is that the site has been trending down since May 2022. Asking price is $39,999. View on Flippa

$2K/mo Camera Site: 2-year-old site earning via Amazon Associates only. 1.8K linking domains. A setback is that traffic dropped in May 2022, but appears to have stabilized. Reserve price is $27,000. View on Flippa

$1.6K/mo Gluten-Free Recipe Site: 10-year-old site earning via ads, affiliates, and products. Average of 68K pageviews per month. Asking price is $76,299. View on Flippa

$200/mo Printer Site: 2-year-old site earning $207 L3M average via Amazon Associates. 36 articles published. The asking price is $6,234 (negotiable). View on Facebook

$750/mo Battery and Power Site: 1-year-old site earning $749 L6M average via Amazon Associates and Ezoic. 263 articles published. The asking price is $26,215. View on Facebook

📰 M&A News

Check out the new happenings in the acquisitions industry.

Microsoft Working on ChatGPT Integration for Bing

Microsoft is working on integrating the AI engine behind ChatGPT into Bing Search. With less than 3% share of the search market, they are hoping to leverage their $1 billion investment in OpenAI to take market share away from Google (91% share). The integration could launch by March 2023.

Walmart Cuts Affiliate Commission Rates for January

Walmart has cut the affiliate commission rates for many categories for the month of January. Some categories like Pet Supplies, Toys, and Beauty have been cut from 4% to 0%.

📈 Analysis: Broker Multiples for January 2023 Content Site Listings

For 100 content sites currently listed on the 3 largest broker marketplaces, the average multiple is currently 33.5X.

MarketplaceListingsAvg MultiplePrice Range
Empire Flippers1843.2X$72K – $3.3M
Motion Invest3731.0X$1.2K – $271K
Investors Club4531.8X$4.7K – $398K

Empire Flippers has a significantly higher multiple than the other brokers and has a much higher minimum price of around $70K. They also have higher-quality listings.

One reason for the lower multiple for Motion Invest and Investor Club is that the sites are typically “lower quality” due to lower requirements. Issues like low-quality content written by non-native English speakers and declining traffic are more common compared to Empire Flippers listings.

Another reason is that sites tend to sell slower on Motion Invest and Investors Club and the prices were lowered. There are currently 29 “slow listings” on Investors Club and 15 “slow listings” on Motion Invest according to DealFeed data.

However, the high price point of Empire Flippers listings requires a significant amount of capital which prices out many smaller investors. If your budget is under $70K, you will need to consider listings on Motion Invest, Investors Club, Flippa, or seek off-market deals.

👉 Additional Resources

Here are relevant resources to check up on:

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Mushfiq Sarker

Mushfiq is the founder and leader advisor at WebAcquistion. He has actively transacted on 215+ website acquisitions since 2008. His expertise is in mergers and due diligence of online businesses