One of the most important yet often overlooked things to do prior to selling an internet business is renovating your website. Website designs are not timeless and should be updated every 2-3 years. Company logos should also be redesigned every 3-5 years.
While potential buyers will spend a lot of time analyzing the financials and the viability of your business, they will also analyze your website and if it is dated and not up to par with your competitors, then it is likely that they will build expense that into their valuation model.
The cost of updating a site will amount to fractions of the cost of creating a site from scratch as much of the relevant content has already been established. Therefore, we do tell our clients with dated sites that it makes absolute business sense to touch up the site prior to us listing the business as the minimal expense of the project will be well worthwhile and ultimately equate to a much higher valuation multiple. The higher valuation multiple results in a staggering return on investment for the update.
If you think about it, websites and logos are not unlike traditional brick and mortar businesses in the sense that they must renovate and update their logos and signage every so often. A potential retail customer will sooner walk into a competitor’s updated store with a cool and stylish sign just as likely as one will purchase from a competitor with a trendy website. Visitors will leave a website immediately if it is aged and doesn’t appeal to them. Updating your graphics, layouts and color schemes may not seem very important and is a rather trivial investment, but it can ultimately fetch you an additional five or six figures when you close on the transaction.
As experienced website brokers, we interact with extremely knowledgeable buyers, including private equity firms, strategic buyers and deep-pocketed entrepreneurs on a daily basis. Therefore, we have an exceptionally broad view of the landscape and are thus able to provide our clients with an unbiased perspective and unparalleled strategy.