New Report from Empire Flippers Reveals Increase in Number, Size, and Speed of Online Businesses Sold
A new report from Empire Flippers shows that more online businesses are selling — and faster — across a variety of niches, making it a perfect time to buy or sell an online business.
Wilmington, Delaware
After increasing the number of businesses sold by 121% in 2018, Empire Flippers — the largest curated online business marketplace — created a State of the Industry Report to categorize, analyze, and publicly share the company’s extensive sales data. This database, previously unavailable to online business buyers and sellers, provides powerful information that can help buyers spot changes in the market to help them maximize profits.
From 2017 to 2018, Empire Flippers recorded an impressive 24% increase in their average deal size. While this statistic is specific to Empire Flippers’ marketplace, it represents an increased demand for online business sales.
“This is a good thing for sellers, and indicates that more investment money is entering our space that is willing to buy profit-producing digital assets,” says Director of Sales Alex Champagne. “We’ve seen this in action as we encounter more portfolio and investment funds with refined acquisition strategies in certain verticals.”
According to their State of the Industry Report, a particularly notable trend was a significant decrease in the amount of time it takes to sell a business. Businesses are selling in 12% fewer days on average — a number that should encourage both buyers and sellers.
The full report breaks down the average days to sell across 14 different business models, giving buyers and sellers a precise understanding of the sales cycle for their particular niche. The data reveals what businesses are selling the fastest — and which niches are experiencing the most growth.
“It was important to us to share real, behind-the-scenes data of actual deals going down around the world,” says Justin Cooke, CMO and Founder of Empire Flippers. “It’s not just billion-dollar companies buying other billion-dollar companies. Real people are making life-changing money through exiting their online businesses, and we wanted people to know about it.”
Robin Boykin, an entrepreneur who purchased four businesses from Empire Flippers, noted how helpful the platform has been in assisting her in finding deals that fit her needs.
“We had a specific goal in mind when we began working with Empire Flippers. That goal was to acquire at least four different types of online businesses: FBA, Affiliate, Dropship and SaaS. We choose to work with Empire Flippers in part due to several online endorsements of the company. We felt that their vetting process is fairly rigorous and in-depth compared to other website brokers,” says Boykin.
Between 2017 and 2019 the average multiplier for buying and selling online businesses increased by 1%, which means the market neither favors the buyer or the seller.
“Multiples crept up on average just by 1%” says Champagne. “This doesn’t mean it’s exactly a buyer or a seller’s market, but rather somewhere in-between the two extremes where opportunities exist for both sides of the marketplace.”
Empire Flippers’ State of the Industry Report makes it clear that regardless of if you’re buying or selling, it’s a good time to get involved in the online business space.
About Empire Flippers
Empire Flippers is the #1 largest curated online marketplace where over 1,000 businesses have been successfully sold. With the Empire Flippers marketplace, website buyers and investors can build and expand their portfolios while providing career-changing exits for sellers and online entrepreneurs.
Free for media and blogger use (Click to open media file)