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Selling Your WordPress Plugin or Theme Business

Selling Your WordPress Plugin or Theme Business

Over the past few years, we’ve seen many acquisitions and merges in the WordPress space. This is a quick look at how their valuations may work and what important factors could come into play.

Valuations

The ideal situation for selling is when your plugin or theme business already has a relatively stable month over month revenue. The market is currently dictating a sale price of 2.5x to 3.x annual net profit.

In most cases, as a buyer, you’ll have to put in some work to arrive at an accurate net profit figure. Most of the smaller plugin businesses are run by their original creators and they tend to not evaluate the effort involved correctly, leading to higher net profit figures.

When you compare the multiples of WordPress plugin and theme sales to other kinds of online businesses, they are still quite low. Consider for example SaaS businesses, which sell