Swanny007 - 6:10 pm on Mar 12, 2011 (gmt 0)
There's more to it than that... yes, a 10-year valuation is a fair one IMHO. However if you still enjoy running the site, you'd be stupid to sell now. If you don't mind running it for even 1 or 2 or 3 more years that offer could be much higher. If past performance shows you that you are one of the leading sites in your niche you probably have a very good chance of staying there and making more money.
I too have some high-value, high-profit sites, but since I still have interest in running them, no amount of money will make me sell. Not right now. I had an offer to sell my largest site about 3 years ago. I turned it down and I'm making WAY more money today. I'm VERY glad I DIDN'T sell. It's worth a lot more now. And I still get contacted by that company at least once a year, to see if I'm interested in selling (may be the same company who made an offer to you!).
In terms of the offer, it's fair. But is it the right time to sell, for you? Only you can answer that.
I would be curious to know:
- How old is the site?
- How long have you been running it?
- Do you want to walk away from the site?
- Do you still have interest in running the site?
Based on the 1/2 hour a day work for 235K/year profit? Are you crazy? Don't sell!
Also, keep in mind how much tax you would pay if you sold now. How much of that $2.35M would you actually be left with? Around these parts I would wind up paying up to 44% in tax to the government!