oddsod - 11:28 am on Mar 12, 2010 (gmt 0)
If you can improve the value of your sites by what you anticipate they can do , maybe you can raise the sell price.
Unfortunately, that's one of the biggest nuisances around. Buyers simply hate people pumping up the value of their offering based on "potential". Anyone can claim any potential ... and most usually do. Buyers dismiss almost all of it. The value of your site doesn't increase by you changing your anticipation of what it'll make. It increases in value if there's some verfiable change in market conditions or business prospects that the buyer recognises as having the ability to increase profit (and only to the extent the buyer sees profit increasing).
the higher the multiple, the more that any increase in revenue will boost the final value of the deal.
Absolutely. One caveat. Historical revenue serves no purpose except where it provides a guide to the future. And it's not revenue (turnover) buyers are mainly concerned about. Future profit is what they are after and their estimation of future profit is what they base their valuation on.