Acquisition Criteria – Domain Magnate

Acquisition Criteria

Domain Magnate Acquisition Criteria

At Domain Magnate we have various criteria we use for reviewing our deals and making acquisition decisions. Whether you’re looking to sell your business to us, buy a business from us, or invest with us, this page will help you learn more about what we do and how we approach deals. We divide our buying criteria into different categories.

Ethical Requirements

We believe in following strict ethical consideration when reviewing and making decisions about all our acquisitions. We aim to make a positive contribution to the world and society through our business, for that purpose we current avoid businesses which:

  • promote hate, violence, racism
  • sell or promote sale of highly addicting substances
  • produce a clear negative impact on society
  • use deceptive marketing or promotional methods

Similarly, we also have a preference (however, it’s not a requirement) for businesses which:

  • aim to make the world a better place and have a positive impact on society
  • promote or sell renewable energy technology
  • promote or sell green, eco friendly and sustainable lifestyle
  • solve important problems
  • spread positivity and joy

Legal Concerns

As a US company we comply with all US federal and relevant state laws, so we do not acquire businesses that may violate those. These include businesses which:

  • engage in illegal activity
  • rely on copyright or trademark infringement
  • use fraudulent marketing techniques or promote deceptive products

Strategic Criteria

Our strategic criteria is based on our expertise and experience. We aim to acquire businesses that we can operate successfully, grow and improve. As our main strategic strengths lie in our team’s SEO skills, we focus on acquiring business that primarily (more than 50%) rely on organic search traffic. Additionally, our strategic criteria include:

  • Over 50% of traffic is from organic search
  • Revenues generated through sale of digital products, affiliate programs, advertising networks, ecommerce, drop shipping, SaaS, software and more.
  • Business can be operated remotely, without any local presence requirements
  • Evergreen niche and industry

Price Ranges

As we buy businesses on behalf of our investors and funds we have certain obligations regarding what we can pay for different businesses. Our prices and offers are based on a fair market multiple of annual profit. Recent analysis of top marketplaces like Flippa and Empire Flippers  shows that most content, affiliate websites sell between 2x and 3x multiple of annual profits. While some exceptional businesses that have a longer track record and good growth potential can fetch higher prices, and newer, higher risk businesses can sell for less. This is also similar to the multiples we pay directly as well.

When you sell a business via a marketplace or a broker, there is usually a longer process of evaluation, preparation, due diligence, listing, discussions with potential buyers, negotiation and then finally sale, and the commission. The initial listing price may be higher than what we typically offer to buy directly at, however, the final closing price, and what the seller receives after all the commissions is often lower than what we can pay directly. Selling to Domain Magnate directly will allow you to bypass the typical lengthy sale process and save on the marketplace/broker fees and the hustle associated with dealing with multiple, unexperienced buyers.

We are transparent about our pricing, and are happy to explain the sellers our methods and calculations, and deal structures.

Acquisition Preferences

Additionally, our current acquisition preferences (not required) include businesses which have:

  • Substantial opportunities for expansion in their niche through SEO
  • Consistent history of profitability
  • Growing niche
  • Diverse sources of revenue and opportunities for optimizing monetization
  • Competitive advantages
  • Limited risks
  • Reasonably priced based on market value

If you believe that your business meets all the requirements above, fill the form here to see if it fits for our immediate acquisition offer.

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