When you’re ready to acquire or sell a web store, you always arrive at the point where a price needs to be determined. It’s not unusual that buyers and sellers have a different view on value. In order to reach a deal, it is important that both parties can support their vision in an honest and just manner. Not only will you be working with the other party in a reasonable manner, but a well founded valuation will provide you during this process with a comprehensive and substantiated assessment of the online business for sale.
On our home page, you will find a module that will allow you to receive an assessment of the value of a web store for free. This obviously is no more than an indication of the value, because we do not have all the information. If you need a substantiated valuation, we can provide you with a detailed assessment: You will receive an extensive PDF report that outlines the entire foundation of the valuation and includes elements that we can’t include in the free version.
Both the free module and our extensive paid report are based on the Discounted Cash Flow as a valuation method. This method is seen by registered company valuators as the best way to determine value, based on forecasts of future earnings and the cost of realizing those earnings. The basic idea of this method is that ‘current money’ has more value than ‘future money’. After all, do you prefer to have 500 euros in your pocket right now or in 5 years from now? But how much is this ‘future payment’ less valuable? We calculate that on the basis of a large range of risk factors. This risk profile depends among other on the degree of dependence on vendors and the degree of dependence on the amount of traffic coming through paid channels like Adwords.
Comprehensive Valuation – € 1500
You may have several reasons for performing a valuation: You intend to offer your online business for sale or you are preparing a bid to purchase a web store. It’s also possible that you might be stepping away from your online business and want to maximize value before you offer the business for sale. But whatever your reason is, when discussing value, it’s important to be well informed. An offer based on “your sense of the market” will probably be thrown out by the counter party much quicker than a reliable valuation based on market data and detailed risk factors.
We can provide this valuation for you on the basis of the previously mentioned Discounted Cash Flow methodology. You will receive an original PDF report, which we will use to explain the calculated value step by step. For a complete and accurate version, it is important that we have as much information and as much data as possible. So, in this instance, it’s not possible to perform a value determination without the help of a web storeowner.