Online Marketplace Flippa Adds Tool to Help Buyers Evaluate Businesses

Saying it’s democratizing access to business intelligence for both buyers and sellers, Flippa has added a new business intelligence tool to its global online marketplace for buying and selling online businesses and digital assets.

The new tool, Flippa Market Insights, provides a decade’s worth of sales information and other business performance data to help potential buyers better understand the business, according to a Wednesday (Aug. 17) press release.

“It’s like Bloomberg for Small Business, providing up-to-date market intelligence and detailed information to help online business buyers and sellers make the best-informed decisions possible about when to execute a transaction deal,” Flippa CEO Blake Hutchison said in the release.

With the new Flippa Market Insights module, business buyers can compare prices of businesses to other businesses that are available for sale or have recently sold and can see how each business compares to the competition on key metrics.

The announcement comes days after Bloomberg reported that the pace of mergers and acquisitions (M&A) activity was running at the fastest pace since November 2021.

Read more: Pace of M&A Activity in August Fastest Since November 2021

In just the first 12 days of August, the dollar value of M&A announced in North America was higher than that recorded during the entire month of July, Bloomberg reported, citing data it had compiled.

An eventual sale or exit is an important part of the small business lifecycle for every business owner to consider, Flippa’s Hutchison told PYMNTS in a 2019 interview.

See also: Why Small Business Owners Should Always Have An Exit Strategy

When it comes time to sell, business owners must determine how to price the business and how to aggregate financial data for prospective buyers, Hutchison said.

“We use the car analogy a lot,” Hutchison said. “You would never buy a car without taking it for a test drive. Similarly, with a business, we ask prospective buyers to imagine themselves in the driver’s seat.”

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