Potential sale of PSMoney.com

psmoney · #1 10-23-2007, 01:39 PM

I am testing waters of selling PSMoney and have come up with an asking price based on the yearly net profit x 3. From what I am reading there are several ways to come up with the proper asking price for a business and would like to post this here to see how it compares in the poker world.

If you are not aware what psmoney is it is one of the leading T$/W$ exchange services for pokerstars.

All help in coming up with what I need to come up with an accurate asking price. I know the asking price is what the buyer will pay, but I need somewhere to start as I feel the range of prices for this type of business can vary tremendously.

Holis · #2 10-23-2007, 02:01 PM

I wish you luck getting that kind of multile in the current environment.

three years profits ?

I personally wouldnt offer more than 6 x monthly earnings for ANY site right now, just too much going on out there.

Others may feel different though

ResIpsa · #3 10-23-2007, 02:09 PM

I have to agree with Hollis. This is just not your average business environment; there are just too many variables to expect to get a multiple like 3X - especially from a pure financial buyer. 6 -12 months is not a bad rule of thumb, although a strategic buyer might be willing to pay more if the target creates synergies with their other holdings. That said, I certainly wish you luck. If you can get that that kind of price that's great.

psmoney · #4 10-23-2007, 02:20 PM

Thanks guys I appreciate the responses. So, you are saying to simply take the average monthly net profit and multiply that by 6-12 and thats what I should ask for?

psmoney · #5 10-23-2007, 02:36 PM

Also, I wanted to know if there are specific things I should withhold from buyers until settle on a sale price? or should I provide them with everything they want to know?

Graham · #6 10-23-2007, 03:05 PM

I agree with the rest probably about 12x montly earnings is about the max, unless you have something unique to offer (ie. a program on your site that does something and is considered an industry standard).

I would try to hold back things like search terms that you rank well for so that people don't steal this info for a similar type of site, etc. Its hard to attract a buyer if you are holding too much back. Good luck with the sale!

psmoney · #7 10-23-2007, 03:21 PM

Quote:

Originally Posted by Graham

I agree with the rest probably about 12x montly earnings is about the max, unless you have something unique to offer (ie. a program on your site that does something and is considered an industry standard).

I would try to hold back things like search terms that you rank well for so that people don't steal this info for a similar type of site, etc. Its hard to attract a buyer if you are holding too much back. Good luck with the sale!

There are several unique processes/software involved with my business. I will make a post giving a bit more detail later this week when I finish up my financial report.

psmoney · #8 10-25-2007, 05:39 PM

I have completed a full detailed Financial report for serious buyers to view. The report consists of total expenses, total revenue, total amount of transactions processed, and Net profit. I have not come up with an asking price, but am openly accepting offers.