When David Fairley from Website Properties, a Broker partner on Flippa, first saw this Educational SaaS site he was blown away by the success and growth potential of the business.
“This site had enormous amount of traffic it was doing 50 million visitors a month. It was simple and elegant and it was completely under monetized.”
David Fairley of WebsiteProperties.com
At the time of sale, the site was making a profit of just over $100,000 a month with slow but steady growth. David immediately saw the potential and knew that buyers would too.
The Seller
Before David could take the site to buyers, he needed to work with the seller to communicate the value of the business.
The seller was a teacher who had almost stumbled into creating a very successful and well trafficked website. Originally the seller built the site as a resource for other teachers and students looking for educational worksheets, and over 5 years the site attracted 2 Million registered teachers and 4 Million registered students. The seller initially listed the business on Flippa by himself and wasn’t getting the traction he expected and was resigned to taking a lower price than what the business eventually sold for.
This is where a brokers expertise can be invaluable to the sale of a business.
“It was a little bit stressful in the last few weeks but I’m really happy with the outcome and really appreciate all David’s efforts.”
Seller
Working with a Broker
Once David from Website Properties took on the site, his first piece of advice to the seller was to take a step back and think about what the business is truly worth. Regardless of the past lack of offers the seller had seen, David knew there was the right buyer out there who would see the potential and acquire the site at a price that matched its value.
“It definitely underscores the value of what this partnership will offer sellers, you only know what you know, you only know so many people and trying to deal with all the administration that goes into selling a business is why I got into the broker business. I want to help people sell businesses at the price their business is worth.”
David Fairley of WebsiteProperties.com
The Sale
The sale of this Educational SaaS Platform is the perfect example of how Flippa works in conjunction with our Broker partners to secure deals for our community. In this case an incredible education site was listed for sale on Flippa but we weren’t seeing the buyer interest we expected. Once the listing was with Website Properties, David reached out to his network of buyers to share the listing on Flippa and within two weeks they had an offer.
The site ended up selling for $8.5M at a multiple of 6.4x. Well above the original price the seller was expecting.
“It was super exciting. I was excited as much by the prospect of delivering that kind of result for our partnership with Flippa as I was for the seller. It takes a lot of mental finesse and this one was really challenging… it’s a watershed moment of many more deals of this size to come.”
David Fairley of WebsiteProperties.com
This was not only a case of a seller receiving an incredible price for an incredible business, but the buyer also had the vision to see the potential of the site, truly believing in the power of education to change the world and the value of this site. This is an example of a perfect match between a buyer in the US and a seller in Europe.
If you want to take advantage fo the benefits of selling on Flippa through a broker, Amber Burke is the person to speak to. Amber manages our Broker Program, matching sellers with the best broker for your business.
Ready to start selling with one of Flippa’s broker partners? Start now.
Or if you’re a broker looking to gain access to the largest network of online business buyers and experience exclusive rewards, become a Flippa Partner today.
