In spite negligibly low advertising costs, the company’s website had more than 5 million unique visitors every month due to the proficiency of the founders in the field of SEO. After the implementation of CPC and CPA models of advertising sales, the company was able to dramatically increase revenues and gain profitability on net profit at the level of 20%.
Following this level of growth was possible only due to continuous expansion into more competitive segments, which required investment from the shareholders and time for implementation. As an alternative, the sale of the business to a larger competitor was chosen, which allowed the competitor to achieve a more confident position on the market and the shareholders of the company left the business with a good profit.
Business: $4M per year revenue, $1M profit, more than 5 million visitors per month.
Deal: 100% cash-out sale to a Russian strategist.
Deal Industry: Internet
Deal Type: Sale the company