Comments on: How Do We Evaluate Our Online Company

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[...] conversation about the supposed housing bubble in Canada with my best friend (and partner in my online adventure). He was explaining that he believed that there was a housing bubble in Canada and that it wasn’t [...]

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[...] other choices. I’m more the type of guy that will concentrate on making more money (through my online company for example) than trying desperately to cut into my lifestyle. What I really can’t deal with, is the [...]

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[...] The Financial Blogger reveals how we evaluate our online business. [...]

By: Financial Ramblings « Intelligent Speculator

Financial Ramblings « Intelligent Speculator — Sat, 17 Jul 2010 14:00:25 +0000

[...] Johnson: an opportunity to buy @ DividendTree -Siren’s call of passive income @ MoneySmarts -How do we evaluate our online company @ TheFinancialBlogger -Look into Canadian energy stock Enbridge @ ThePassiveIncomeEarner -Stock [...]

By: This and That: Dog Days of Summer Edition | Canadian Capitalist

This and That: Dog Days of Summer Edition | Canadian Capitalist — Fri, 16 Jul 2010 13:46:40 +0000

[...] The Financial Blogger shared how he values his online business. [...]

By: Money Smarts Blog

Money Smarts Blog — Tue, 13 Jul 2010 12:56:52 +0000

I’m not suggesting that you guys should split up – if the partnership is working then keep going. However, people change, situations change…

If necessary, both of you would be fine on your own. Everything can be outsourced.

By: The Financial Blogger

The Financial Blogger — Tue, 13 Jul 2010 00:24:38 +0000

@ Money Smarts Blog,
I like the way you did it with your own blog, but I hope I’ll never come to this… ’cause we wouldn’t go far if we would split up!

@ Dividend Growth Investor,
This is why we only assess 18 month of revenue. Therefore, regardless of what you want to do, you will most likely realize this value (while not getting the true value as you mentioned).

By: Dividend Growth Investor

Dividend Growth Investor — Mon, 12 Jul 2010 19:58:52 +0000

Well while the valuation model is not perfect it is at least conservative. It would be easier to assess your company’s value and compare it to past periods, since you have a known formula for valuing assets.
The main issue of course is not the current value of the company but its future value. And it is your company’s strategy, based on input from partners that will shape the future valuation and make or break your partnership. In other words if one partner wanted to expand by acquiring all finance related blogs on the net, while the other wanted to harvest the revenues, you might not be able to realize the full value of your company..

By: Money Smarts Blog

Money Smarts Blog — Mon, 12 Jul 2010 19:15:35 +0000

Neat stuff.

I can tell you from experience that if you guys want to split up, then doing a shotgun is the best approach.

Basically the person who wants to buy the company or any asset (ie one website) has to make an offer to the other partner for their half.

The other partner can either accept the offer and sell their half or buy out the other half for that amount. (ie buy from the person who made the offer).