Loading...
Answers
MenuCan anyone recommend an ideal co / m&A firm / resource to approach re exit strategy. We're a v fast growing start-up, but want to assess options. Thx!
Answers
It is difficult to give you a clear answer without knowing more about your company and product. Are you looking to sell or just want someone to advise you on what/how to do it?
Having been active in the industry of online acquisitions for half a decade I would strongly recommend you to consult with a broker who specialises in online properties, as bricks and mortar M&A firms typically don't have the necessary knowledge to provide you with an accurate valuation, or the contacts to find your business a qualified buyer when the time comes to sell it.
You're welcome to speak to either my team (I run the brokerage division of Flippa.com called Deal Flow - http://dealflow.flippa.com), or other reputable brokers in the industry, such as Quiet Light Brokerage and FE International.
Best,
Bryan
Thanks Bryan.
If you are still looking for help, do get in touch (ismael@feinternational.com). We have offices in London and the US, so know both sides of the pond very well.
We have advised on more online business sales than any other specialised broker, so should be well placed to point you in the right direction.
It sounds like you don't need a broker yet but someone to brain storm the idea with. If you go to a broker now, you will be offered JUST what that broker knows and not other options that might be on the table. As someone who gave legal support for a lot of companies, I was also very often the CEO/ Chairperson's "shrink" as well and we discussed such issues thinking what are their best options to move forward/exit. You can give me a call so we can have a quick chat to see if this is relevant in your case as well.
Related Questions
-
Freemium v.s. free trial for a marketplace?
It depends on a number of factors but I'd boil it down to two key things to start: 1) What is your real cost to provide a free plan or trial? 2) Who exactly is your customer and what are they used to paying and who and how do they pay today? When you say "online workforce marketplace" it sounds as though you're placing virtual workers. If that's the case, or if you're paying for the supply side of the marketplace, the question is how much can you subsidize demand? Depending on where you're at in the process, I'd also question how much you can learn about the viability of your marketplace by offering a free version, assuming again, that free is actually a real cost to you. I was part of a SaaS project that started charging people for early access based mostly on just a good landing page (we clearly stated they were pre-paying) and were amazed at the response. I've also run a SaaS product that offered free trials and realized that the support costs and hand-holding and selling required to convert from free trial to paid wasn't worth it, this despite the product's significant average ARR. You might be better off providing a "more information" sign-up form (to capture more leads) and let them ask for a free trial while only showing your paid options. I've been amazed at the lead capture potential from a simple "have questions? Click here and we'll contact you" This is all the generalized advice I can offer based on the limited information I have, but happy to dive-in further if you'd like on a call.Tom WilliamsTW
-
What support software do most marketplace startups use? Is it custom, or a SaaS product like Zendesk, Desk.com or Uservoice
Your support software should cater to your needs, depending on how your business operates. Fiver uses Vanilla forum and Zendesk. Thumbtack uses Zendesk. Not sure about AirBNB, their help center seems to be custom. Depending on how well funded your are, I would recommend starting with a free plan with one of the help desk SaaS products, or even using open source ticketing platform. Then, as your needs grow and you need integration with your marketplace, there's no reason you can't scale and migrate.Viktor NagornyyVN
-
What's the average CAC value or range for a Marketplace client?
I think you're looking at this the wrong way. Your customer acquisition cost is not something you should benchmark against other businesses. Without knowing more, like your short and long-term goals, it's impossible to answer. Two companies with similar business models may have different answers to this question. A venture-backed startup trying to keep up with aggressive revenue goals may be able to stomach an astronomical CAC. A bootstrapped startup that is not seeking venture money may aim for slower growth and much lower CAC. I suggest setting up a call with a marketing or finance expert to determine what CAC is appropriate for your company and how to get there.Taft LoveTL
-
How to sell a service based company?
YES! You certainly can sell a services business; and, if it is positioned and prepared properly, for pretty great returns too. There are a number of different exit strategies available to you, not ALL of them acquisition. For instance; we have helped service business owners transition (exit) from their business without selling the business, but instead by retaining a minority interest and receiving large (7 figure) royalty checks for years after their departure. That said, IF acquisition is what you want each of the dozens of strategies available to you really begin with identifying prospective buyers, understanding their motivation for acquisition and pivoting your company into alignment with those motivations. I explain the process in more detail here: http://www.zerolimitsventures.com/cadredc Hope this helps! Good luck. SteveStephan LittleSL
-
When recording income for a marketplace startup, is it typical to use the gross transaction or just the fees collected per payment?
You would include all those lines in your revenue. Typically this looks like: Receipts: [full cash inflows] Fees: [payouts to vendors] Gross Receipts: [subtract] This ALL does into the Revenue category, so that your stated revenue is indeed net of fees, but you can see how it breaks out to understand how money is moving. That's if the margin there is very slim. If the margin is pretty good, and if you believe you can increase that margin materially over time, you can consider putting those fees into your gross margin instead of in your income.Jason CohenJC
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.
