Acquisitions & Exits: How Much Is Your WordPress Business Worth? — Freemius

Demand Is Increasing for WordPress Businesses

How Your Valuation Ties to Different Types of Exits

Acqui-Hire: Keeping It in the Business

Earn-Out: Buy Now and Pay Later

Clean Exit: Walking Away, Cash in Hand

Valuations Are Linked to What Buyers Are Willing to Pay

  • Founders looking to expand products or acquire competitors
  • M&A teams desiring favourable revenue potential
  • M&A teams wanting to meet strategic needs

How to Evaluate the Worth of Your WordPress Business

‘From what we are seeing, it’s 3–4x when the interest to acquire originates from a buyer. When a plugin/theme author initiates an M&A discussion, most of those deals are closed within 2–3x annual gross (annual gross <> ARR).’

- Vova Feldman, Founder & CEO of Freemius

Use the EBITDA Formula

  • It doesn’t account for depreciation costs which could skew results
  • It does not include any tax benefits
  • It only accounts for operating expenses
  • It excludes capital expenditures like marketing spend

Get Your Financial Documents in Order

Finding Your Buyer

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