How to Value a Job Board
Chris R
this...
How do I value my online job board business? I have been approached by
some firms and I need to give them a price at some point. I have spoken
to a few people in the industry and the numbers I have heard mentioned
so far are 1.5 to 5 times revenue.
But what if I think my biz is undervalued? ...i.e. the potential buyers
pricing model is more expensive. If I run the numbers based on their
pricing model my sales are almost double. If I think my clients will
pay these prices is this a realistic approach?
Would appreciate your comments...
Steven Rothberg
The value of any item is based more upon its value to the buyer than to the
seller. If you look at its value to the seller, that's more of a cost
analysis than a value analysis. While it is important to price anything
higher than its cost, you're leaving money on the table if you accept less
than its value to the buyer. You may want to retain an investment banker who
has experience in selling Internet-based companies. They're going to counsel
you to get the potential buyers to make the offer rather than you. When that
happens, you're never going to lose because even if their offer comes in
lower than what you need, you won't be compelled to sell. But if their offer
comes in higher than what you need, then they'll be happy and so will you.
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