How do you sell an SEO company? How do you find out who is selling?

[SEO Lady]

Just a thought here chaps and chapesses.

I've been thinking about investing in my company and wondered, how does one approach selling a SEO company?

If SEO isn't dead in 20 years time then I'll be looking to sell my company as a going concern.

Today's question is .. how do I look to buy someone else's SEO company in 2021?

Has anyone ever bought or sold their SEO company, website and clients?

 

[Ewan Kennedy]

I've been closely involved with many corporate deals in my previous career. I got into SEO because I was emailed details of an SEO business for sale on businessesforsale.com which gave me the idea of starting my own SEO business.

There are quite a few sites that you can browse for business for sale.

For an agency business to be viable for sale as a going concern, it really needs to have reached a substantial size and have a management structure in place. If it doesn't, the risk for the buyer is too high. If the business is too heavily dependent on the owner, the business is likely to evaporate when the owner sells, unless he is tied in by an earn-out or consultancy arrangement.

Also, the costs for legal and due diligence associated with a deal can be prohibitive for small businesses. Fraught with complications. The most likely outcome for a business of just a handful of people or fewer, is to realise a small amount for the goodwill i.e. to sell website, domains, reputation etc.

 

[SEO Lady]

The most likely outcome for a business of just a handful of people or fewer, is to realise a small amount for the goodwill i.e. to sell website, domains, reputation etc.

You make some very valid points, I know for sure as a sole trader that a lot of my clients were drawn to work with me specifically because I'm a female.

I'm aware of businessesforsale.com, thanks for taking the time to respond to my question.

 

[Ewan Kennedy]

You make some very valid points, I know for sure as a sole trader that a lot of my clients were drawn to work with me specifically because I'm a female.

I'm aware of businessesforsale.com, thanks for taking the time to respond to my question.

Yes, the personal connection is often what matters most for clients. Is that related to your original question?

 

[The Byre]

Forgive me for stating the obvious, but a company is worth the net value of its assets. Land, buildings, machines, vehicles, existing contracts, IP, inventory, receivables, stuff like that. As most SEO companies are tiny and depend on one or two people that are not going to stay after a sale and the company owns no physical assets but may have a few current SEO contracts, that means that they are worth the value of those contracts and no more. That makes buying and selling such entities very difficult, if not downright impossible.

If you want to sell your company in 20 years' time, plan on making yourself redundant. See yourself as the owner and not as the manager. When I sold my news agency (similar deal - no real assets!) it was the hundreds of contacts/free-lancers and the staff that the buyer wanted. I had to restructure so that the place ran without me. I also had to stay with the company for just over one year to hand over. From first contact to getting the Duck out of Fodge, took three years.

I, together with other owners, sold a company in Germany in 2018. That took forever! Many years and dealing with several suitors, until someone put a 5% non-returnable deposit down to option the purchase for one year. The final deal was five-times the first offer from some chancers that we obviously turned down.

 

[SEO Lady]

Yes, the personal connection is often what matters most for clients. Is that related to your original question?

Good question Ewan, I hadn't considered my USP/ personal connection to my clients. Food for thought indeed.

 

[SEO Lady]

I had to restructure so that the place ran without me. I also had to stay with the company for just over one year to hand over. From first contact to getting the Duck out of Fodge, took three years.

Very good point, thank you for sharing this - I hadn't considered the handlover logistics, of course I can't just sell my business and customers in a day, of course I'd need to stay in Fodge for a time.

I, together with other owners, sold a company in Germany in 2018. That took forever! Many years and dealing with several suitors, until someone put a 5% non-returnable deposit down to option the purchase for one year. The final deal was five-times the first offer from some chancers that we obviously turned down.

How did you advertise the business for sale back in 2018 may I ask?

 

[AllUpHere]

How many staff do you have? Do you have tangible assets (buildings etc)?

 

[The Byre]

How did you advertise the business for sale back in 2018 may I ask?

We didn't and we didn't have to! We had assets they needed to expand and develop their business. They knew exactly where we were and we stood in their way.