
Ask HN: How do I sell my bootstrapped business? - bsolofounder
I have 6 year old web app, with 600k users, 40k unique visits per day, gross around 120k per year, and net around 70k. It&#x27;s bootstrapped, I&#x27;m the only employee, and I own 100% of the company. It takes very little work to keep it going, and it&#x27;s a sweet gig.<p>However, I&#x27;d like to eventually exit if I could. Honestly, I enjoy starting businesses, but my interest wanes, and I&#x27;d like to be emotionally freed up to work on other projects and not feel guilty for neglecting my golden-goose.<p>Ideally I&#x27;d like to sell in the next year or two for $3-4 million in cash. Is that ridiculously optimistic or might it be possible?<p>The only thing I know to do is cold contact my competitors and pitch the acquisition to them, but I hate the idea of giving them confidential information about my business if they actually have no interest, or no means to purchase.<p>I suppose I could also cold contact lateral businesses that my app might compliment. But does cold contacting in this case work?<p>Any advice on how I could sell my business? Should I find a broker to help me, or something?
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jesusmichael
I worked in M&A in the valley for years. A 6 year old app with tiny revenue.
You'd be lucky to get 1x the net. Unless you have some sort of IP that's
patented or patentable, what would an buyer be purchasing that would justify
such a multiple? Your user list is worthless, unless they are purchasers. I
recommend you automate whatever you can an keep it or hire some hungry Cal
student to keep it up relevant and get a job and put the cash into another app
or into the market.

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testrun
For stable business you normally look at a P/E multiple of 10. So in your case
it will be around the $700k mark. However, if it is growing, and growing
quickly, then $3 - to $4 mil is possible.

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NicoJuicy
Probably [https://www.sideprojectors.com](https://www.sideprojectors.com)
owner will come here and will promote his site ;)

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ohsnap
Yes, find a business broker. Even if you are not ready to sell they can help
put the company in a better position to sell in a year or so. If you can't
find a broker, do some basic PR about the company... they will find you.

Broker or no, expect to give out confidential info to your competitors as they
are the ones most likely to buy. That's just part of the risk of selling.

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helpful
You can always try a site like flippa.com. As for the valuation, it's probably
a bit optimistic but I guess it never hurts to see what someone might be
willing to pay. But my personal guess is it's going to be a lot less than that

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centdev
A business making 120k a year with a net of 70k a year is only worth 210k.
Think 3x net. How many of the 600k are paid users if you have 40k uniques per
day? If it's all as rev than it's lower than 3x.

