We Buy Web Companies, a division of WordwrightWeb, is proud to share that we have completed our first acquisition deal of 2024! We recently finalized a deal to purchase a web design/hosting and search engine optimization (SEO) company based out of San Antonio, Texas.
We came into contact with this company through a letter campaign we sent out at the start of the New Year. While we have some other deals still in the works, this was a motivated seller who was happy to move things along quickly.
The seller had an entire company he was looking to hand off. So, our business valuation was based on the number of accounts and the annual revenue brought in. All of the websites designed by the company are Joomla sites. This made the seller even more motivated to go with us, as our web developers are Joomla experts. The negotiation phase was swift thanks to both parties having a relatively close number in mind to begin with, making it easy to agree on a middle point.
From initial contact to closing the deal, the process took about six weeks. As for exchanging the keys to the castle, we have a relatively short process. We lay out these steps in our Asset Purchase Agreement, which we write and modify depending on the seller.
The steps are all agreed upon in advance, including what the emails to customers will say, and the sequence in which they will be sent. Both parties read the emails in advance. Then, we write a small initial check to the seller. The seller sends emails to the clients to inform them of the merger. Then, we send our introductory emails and a second check to the seller. The seller provides access to online servers, domain name accounts, etc. We then make phone calls to each of our new clients introducing ourselves. After 3 months, we send the final payment based on the stipulations of the interim occurrences.
We honor the previous owner’s pricing for 180 days before adjusting, if necessary. Of course, clients are thrilled if their bills decrease under WordwrightWeb. If their pricing must increase, we highlight the increase in quality and quantity of the services they will now receive. In this case, our new clients will gain access to a larger support team, more options for web design/development including Joomla upgrades or migrations to WordPress, business-class web hosting, and digital marketing opportunities. With more access to professional services comes more potential for these clients to grow their company and receive a fantastic ROI.
This deal marks our eighth successful web company M&A transaction. With each deal, we learn new things and occasionally run into minor difficulties. But each success and difficulty helps us fine tune our process, ensuring the most seamless transactions possible for us, the seller, and the clients.
If you have a web company or clients you’re interested in selling, contact us today! We are available by phone, email, or you can fill out our contact form.
