With the looming expiration of the Bush tax cuts, it is quite possible that the capital gains rate will increase from 15% to 20% next year. Obama has made it clear that he would like the rate to be 23.8% and if he gets reelected as many believe he will, he just might have his way. Without delving into politics which is outside the scope of this article, I believe that there is a greater chance of the capital gains rate increasing than it remaining flat. With that being said, if an individual is considering selling their internet business, then there is no time like present. We are already receiving a greater number of seller inquiries than normal and believe that the number will continue to increase.
Simple Economics 101, based on supply and demand, as the number of online businesses for sale increases, the multiples will subsequently decrease; especially if there is a scramble to sell. If there is more inventory on the market then it will shift to a buyer’s market as buyers can choose from many different internet businesses for sale.
With all else being equal, even a seasoned internet business broker will not be able to get you as high of a multiple so it would appear to be more advantageous to sell website sooner rather than later.