I’m “freelance” consulting for a firm looking to buy online casino sites and the main criteria for buying is evaluation of several factors as follows. The value (either revenue or profit multiple) for making an offer will depend on:
1) Is there room to improve the traffic/revenue from the site through SEO and other methods.
2) Is the revenue spread out over several programs to provide a level of stability and insurance against big winners.
3) Does the site have any penalties or a bad reputation.
4) Is the site stable or in decline.
Due diligence is always a key part of the deal and questions asked/investigated include contacting the seller’s affiliate managers for clarification on payments made, history search of the site via Google/archives etc, last 12 months revenue evaluation, investigating the background of the seller, whether income is affected by revenue from other sites and various other things.
With the gambling market being fairly high-risk and easily affected by external matters/legislation etc, plus the easy level of entry for almost anyone, that’s why often the price paid can equate to a low monthly multiple. The stronger the factors above, the higher the multiple.
A strong site/seller in all the areas above could definately get 24 months plus, but unfortunatley in this industry meeting all the criteria a buyer would want is tough. If the buyer is a pucker company, they will go into all the areas above in depth and offer a fair price IMO. If the buyer is another affiliate or just a regular guy, due diligence will be less, the risk higher and the offer lower.
The 3 areas you mention weblight are all minor factors for bigger buyers, although they have a place. The seller’s integrity is also a major factor in determining the risk. You also need to put in a lot of work to get a good price, not only during the due diligence period but for a period following the sale. Most big deals will tie you in and introduce some level of anti-competitive clause (which can usually be negotiated). But that can be the difference between 10 months multiple and 36 months. Also with bigger deals be prepared for a lump sum followed by staged payments over x months (usually tied in to your involvement). And you definately need a good lawyer 