lulz on other forums (current, not classics)

General Discussion
#2906

He has been thinking that for years.

Also that’s a bitchy answer. These aren’t your fucking buddies who you’re doing a favour for and they should love you off for having the site.

The members are his customers. The most important customers as without them, the advertisers wouldn’t pay a fucking cent to be there.

He has always been slightly warped in understanding this. IT IS A BUSINESS, NOT YOUR BIRTHDAY PARTY.

Not really doing a good job of selling the business either, is he. Basically saying. It’s a nightmare to own that wears on you physically and mentally and will leave you wanting out.

Great sales pitch!

#2907

How do you assess the value of something like that?

#2908

If I had to guess, IB or some similar outfit sent him an inquiry about purchase.

There is a formula for assessing value - again, a guess for me would look like:

Vendor tiers - how many in each category, annual worth of each, attrition, new sign ups, LTV of each, average life span of each account etc.
Members - total number, active number, hits per day/week/month/year, attrition avg etc.
How many advert’s and where (Google, Bing, Yahoo etc)

Many similar variables to the above and more. All weigh in on how the potential buyer might value the business.

#2909

earnings multiple (assuming it has any after paying yourself) like every other business on earth

#2910

If I had to guess, IB or some similar outfit sent him an inquiry about purchase.

There is a formula for assessing value - again, a guess for me would look like:

Vendor tiers - how many in each category, annual worth of each, attrition, new sign ups, LTV of each, average life span of each account etc.
Members - total number, active number, hits per day/week/month/year, attrition avg etc.
How many advert’s and where (Google, Bing, Yahoo etc)

Many similar variables to the above and more. All weigh in on how the potential buyer might value the business.

#2911

earnings multiple (assuming it has any after paying yourself) like every other business on earth

#2912

What I would like to know is who the potential buyers are and how far down the drain it will go until the members decide to go create yet another Audi forum.

#2913

Usually four different valuation approaches.

a) trading multiples
b) transaction multiples
c) Leverage buy out
d) Discounted Cash Flow

#2914

how is leverage(d) buy out a valuation method? It’s a purchase method. Nothing more.

#2915

LOL at Anthony’s response. I think he just got lucky with AZ (or not? Not sure how profitable it is) because he clearly has no business sense.

#2916

LBO involves financial metrics such as LTM and forward EBITDA valuation, IRR, leverage capacity. It is a valuation method through a completely different process than a DCF analysis, etc.

#2917

What I would like to know is who the potential buyers are and how far down the drain it will go until the members decide to go create yet another Audi forum.

#2918

Usually four different valuation approaches.

a) trading multiples
b) transaction multiples
c) Leverage buy out
d) Discounted Cash Flow

#2919

how is leverage(d) buy out a valuation method? It’s a purchase method. Nothing more.

#2920

$194,400

JFGI

http://img.tapatalk.com/d/14/02/08/u8emepyt.jpg

I was going to say 4x EBITDA but WTF do I know, I would have overpaid… The only thing I was told from the guys that met Anthony was the big advertisers pay somewhere around $1K/month.

#2921

needs moar acronyms!

Don’t forget we’re referring to a very small business that a leveraged buyout firm would never look at. If you’re trying to use it to establish a floor valuation , the accounting costs of doing so would likely eat up about 6 months earnings for the business (and that includes Anthony’s salary)!

If it’s a full time job for him, I doubt he has other employees. He’s the sole proprietor, and as a result the majority of the company’s earnings are used to pay him. Net of that, there likely are next to none. It is not like he is taking $125,000 a year out of the business in income and retaining $100,000 a year to grow it. I imagine 100% of ‘profits’ are basically his salary to himself. Without him there to run it, the business is dead. Unless someone replaces him…which will then eat up that income stream again.

There frankly is no real value beyond buying yourself an income stream. Anyone who buys it is buying Anthony’s salary for themselves, and hoping to grow it.

#2922

That assumes loads of things…and is based on page views from the looks of it. Not all page views are created equally. Some sites don’t do a great job of monetizing page views. Some do incredibly well. So you can’t necessarily ‘just fucking google it’.

At the end of the day, is Anthony really going to take $194,000 for the business that he took 12 years to build? Is he going to start over with a relatively small sum of money and effectively become unemployed? I doubt it. Maybe in his head he thinks ‘I take $90,000 a year out of here…and if my business is worth 10x earnings, someone will give me $900,000 for it’. Once he ventures into the world of TMMA (TinyMarketMergers&Acquisitions) he will probably realise that he hasn’t a hope in hell of that, and will stay on hand because the income he draws for the skillset it requires is going to be tough to beat in the form of a cheque from a buyer.

#2923

In conclusion it’s worth what someone is willing to pay for it.

#2924

Wow you’re serious today, I thought you’d get the humour of a dumbass web site in estimating the value of a business, not kick at my karma…lol buddy

Anyhow I’d trade jobs with Anthony for a while. Would be nice to do almost nothing but talk to performance car shops and enthusiasts, etc. I’d be trying harder to leverage that into perks with A o A, you’d think Audizine would get to review the new cars, etc considering the membership base.

#2925

Always is :slight_smile: