The narrator sold Chrome extensions on Empire Flippers. They chose this platform for its reputation, buyer and seller protection, and end-to-end process management. Empire Flippers offers an online valuation tool that provides an indicative price range.

The selling process begins with vetting and valuation. Empire Flippers conducts extensive verification of revenue, costs, and other data points. Sellers may need to provide read-only access to accounts like Stripe and Google Analytics. Empire Flippers rejects most businesses that apply due to inflated numbers or false claims.

After receiving a preliminary valuation, sellers submit their listing for vetting. The final valuation typically comes after 1-2 weeks. Agreeing to the valuation is a legally binding commitment to sell at that price.

Listings go live on Mondays and are emailed to active buyers. Buyers must have verified liquid funds to unlock listings. Initial calls are scheduled with Empire Flippers present. Negotiations usually focus on deal terms rather than price.

Once an offer is accepted, a 10-20% holding deposit is paid to Empire Flippers. The listing becomes inactive, and the remainder of the payment is made before moving to the migration phase.

The narrator considers Empire Flippers the gold standard for selling software apps in their price range. They appreciate the platform's integrity and smooth process throughout the sale.

The narrator discusses pre-sale optimizations for selling a business. These are actions taken before selling to maximize the sale price. An example is given using a 40x multiplier, where every $1,000 added to monthly net profit translates to an additional $40,000 at sale.

Valuations typically consider the trailing 12 months. Increasing sales or reducing costs can show positive trends and increase business value. The narrator emphasizes the importance of showing upward trajectories in key performance indicators (KPIs).

It's crucial to continue running the business effectively while preparing for sale. There's no guarantee of finding a buyer, so maintaining profitability is essential. The narrator warns against neglecting the business operations in favor of focusing solely on the sale process.

The lesson concludes with a mention that the next lesson will cover the end-to-end sales process.

The narrator discusses factors affecting valuation multipliers for businesses. Key performance indicators like churn, customer lifetime value, and customer acquisition cost are important. The composition of revenue streams, including monthly recurring revenue, annual revenue, and lifetime revenue, is considered.

Profit margin, business age, and market niche are significant factors. Buyers typically prefer businesses with at least two years of operation. The growth trend of the user base and monthly profit is evaluated. Owner involvement and transferability are assessed, including reliance on the owner and ease of transition.

Untapped acquisition channels and traffic sources are examined. The competitive landscape and market saturation are considered. The value proposition for users is evaluated. Assets included in the sale, such as software, email lists, social media channels, and auxiliary accounts, are assessed.

The narrator mentions including Merch by Amazon and KDP Amazon accounts in their sale. Buyers conduct thorough due diligence on all aspects of the business. Different brokers may offer different multiples based on these factors.

The narrator concludes by mentioning that the next lesson will cover pre-sale optimization strategies for maximizing the sale price of a Chrome extension business.

The narrator discusses valuing Chrome extension businesses. Online valuation tools can provide quick preliminary estimates based on key metrics. These tools are not exact but offer a decent range. The narrator's own business valuation fell in the middle of the range quoted by an online tool.

Free preliminary valuations from professional online brokers are recommended. The most common valuation method is the standard formula: net profit times a valuation multiplier. For example, $10,000 monthly net profit with a multiplier of 40 results in a $400,000 valuation.

The valuation multiplier is crucial and influenced by various factors. Another valuation method is Seller's Discretionary Earnings (SDE), calculated as revenue minus cost of goods sold, expenses, and owner compensation. Some brokers may use the SDE formula instead of the standard one.

The narrator promises to discuss factors affecting the valuation multiplier in the next lesson.