Last week I was able to identify how much revenue Glassdoor has based on an internal PDF from its new owner Recruit. According to them, GD sales hit $171 million in 2018. With a sell price of $1.2 billion that gives them a valuation of about 7X annual revenue.
7X is on the higher end of acquisitions that I have seen in this industry over the years. I think the majority of sites sell for less — somewhere in the 2X-3X range. It just depends on the site fundamentals. Namely;
- How profitable it is.
- What kind of client loyalty it has (how often clients come back).
- The niche they are in (more or less competition).
- Cost of running the platform.
- Size of registered seeker and employer database.
Acquisition valuations are typically hard to come by but these new numbers from the Glassdoor deal shed a little more light on how buyers value potential job site businesses.
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