Acquired in Feb 2019 for $51K, following several months of continued engagement and negotiation with the seller through a broker.
We were able to get a lower price for the business due to different mitigating circumstances:
- The seller was Vietnamese and the communication was a little challenging through a broker, who was translating for us.
- The website was previously hit by a Google update and lost most of its traffic, but the owner managed to recover it and lift the penalty – a fact that deterred most buyers, while we saw that as strength, since a recovered site is far less likely to suffer another penalty.
- The seller didn’t have well organized financial and traffic details, which complicated the due diligence a bit
- Timing was on our side as we were able to acquire the business when revenue was at its lowest during the year.
After the acquisition we’ve decided upon an optimal strategy and immediately set out to execute it:
- We’ve optimized conversions by adding better calls to action and comparison tables
- We’ve improved rankings by optimizing many on-page factors
- We’ve built multiple backlinks to improve rankings further
- We’ve also embarked on a campaign to find alternative monetization methods
Our original plan was to optimize monetization and rankings in the short term, and then review it after 6 months to decide whether to list it for sale or continue growing. Based on a risk vs growth analysis we’ve decided to sell it.
During the 8 months we’ve owned it, we were able to grow the revenue from around $2K to over $4K per month and generated over $34K in revenue:
The site was sold in Oct 2019 for $142.5K via a Flippa sale
After the sale we’ve helped the buyer manage it for several months, to teach him and his team on operations and management and basics of SEO and also introduced him to our contacts for continued management. The buyer was thankful for our service, as it was his first such acquisition, and interested in acquiring more businesses with us later.