Everyone was predicting that we'd see some acquisitions this year due to the economy. But the economy has had the opposite effect. Companies are hoarding cash and probably waiting for the weakest to die off before moving in.
But I wanted to propose an experiment for you all to take part in. Lets create a fictional job board and find out how you put a value on it.
First I have 2 key questions for you to answer.
1. Should a job board be valued based on a multiple of sales or a multiple of profits? If so, what number multiplier would you give each?
2. Would you sell a job board at this moment in time given the down market?
Now lets create our fictional job board. We'll call it "Xjobs". Its a national niche board for XYZ industry (has decent growth predictions for future). Its the leader in its market.
FIGURES FOR PAST 3 YEARS
Sales: $400k in 2007, $325 in 2008, $250k (projected 2009)
(sales slowing to due to job market conditions)
Expenses: average $25% per year
Profit margin: 75%
Total Profits for last 3 years: $731,250
Monthly page views: almost 1 million
Uniques: 150k a month
Ok now answer the first 2 questions (via comments) and give your opinion on the value you would pay for a site like this. Explain your reasoning. If you need more information let me know and I will add/edit the original post.