About Digital Exits
Digital Exits is a privately-held company that was founded in 2013 in Los Angeles, California. The predecessor of Digital Exits, Broker Corp, started its operations in 2011 before adopting its current name in 2013. The company is a website brokerage that connects online entrepreneurs who want to sell their online businesses to potential buyers.
Digital Exits also offers sell-side consulting, buy-side consulting, and exit planning. Digital Exits operates in the United States and it is licensed to conduct its business in all the 50 states. Jock Purtle, the managing director and CEO of Digital Exits, is focused on growing the company to be the leader in the online business brokerage space for high-growth online businesses.
Jock Purtle – Founder of Digital Exits
Jock Purtle is the founder and CEO of Digital Exits. He’s been featured in popular publications such as Forbes, CNBC, Business Insider, Wired, CBS News, and other publications for his expertise in selling online businesses. Purtle is experienced in online business valuations, website brokerage, and online business consulting. He started working in his family’s business valuation and brokerage company in Australia when he was 9 years old. Purtle purchased his first company at 19 and continued to buy more companies afterward, some of which he later sold for six figures. In 2016, he sold one of his online businesses to XL Media PLC, a UK publicly-traded company.
Purtle is originally from Sydney, Australia where he grew up and attended university. At the university, he was the runner-up in the Australian Global Student Entrepreneurship awards. This achievement, alongside his early experience in valuing, buying, and selling online businesses, helped him get into the online business brokerage in the United States. Purtle now boasts over a decade-long experience in consulting and exit planning across various industries. Digital Exits focuses on small-cap digital mergers and acquisitions and works with clients on the sell- and buy-side with $5 million and above valuations.
How the Selling Process Works
Online business owners planning to sell their businesses must first submit a valuation request on the Digital Exits website. Here, business owners detail the annual business revenues, net incomes, financial statements, website URL, and contact information. Digital Exits personnel then conduct their valuation based on a multiple earnings valuation methodology to determine the value of the business.
The company relies on various factors such as net profit, growth trends, website traffic, link profile, niche, competitors, business model, and age of the business. The factors help determine the level of risk and return. Digital Exit then contacts the business owners with their valuation. If the owners are satisfied with the valuation given, the company’s brokers go ahead and advertise the business to attract potential buyers.
Portfolio of Businesses Sold by Digital Exits
Alcohol Subscription E-commerce Business
The alcohol subscription company started in 2013 with the goal of providing members with exclusive and educational experience of the best-tasting and hard-to-find whiskeys in the market. Through the alcohol-of-the-month club, the members learn about the origin of each whiskey bottle and the distinctive features that make it unique. Apart from whiskey, the company expanded its scope to include other types of spirits that are popular in the market.
The company got into the business when the subscription niche e-commerce in the spirits market was largely underexploited, and the founders wanted to provide a unique experience to whiskey lovers. The subscription segment is estimated to be worth approximately $3 billion or 1% of the $340 billion e-commerce segment. The business previously posted $2,975,708 in revenues and an income of $769,993. Digital Exits assisted the business owners who were selling the company for $2.5 million.
USA Incorporation Services Business
The company was focused on providing incorporation and registration services to international entrepreneurs. Some of its service offerings include registered agent services, foreign registration, US mailing address, amendment, and dissolution. Essentially, the company acts as a link between international entrepreneurs seeking the services of US agencies and service providers in the United States.
The business was able to create an edge in service provision by targeting international entrepreneurs who might be unable to seek the services directly from US agencies. In 2010, the business started seeing revenues and the number of quarterly orders increase in the succeeding years. It owns favorable ratings on BBB and ResellerRatings.com. The company previously reported $826,499 in revenues and an income of $249,881. The asking price for the company when it contacted Digital Exits was $499,000.
Mortgage Home Loan Lead-gen Website
The company is a lead generation website that provides resources and information to residential and commercial mortgage borrowers across the United States. The website matches borrowers and lenders rather than the borrowers trying to reach dozens of lenders to explain their situation. It has a large network of lenders the company has worked with to ensure that their buyers get approved with ease. The buyers enter their details on the website and the company follows up with the lenders to find the right match of lenders to provide loans.
The website also offers an FHA loan calculator that borrowers can use to determine the amount they can get, interest rates and duration of loan repayments. Other services offered by the company include HUD Homestore access, VA loans, refinance, and Jumbo loans. The company earns a $10-$20 fee for each lead generated through the website. It previously posted a revenue of $107,000, with a net income of $104,000. The asking price for this company was $265,000.
Paleo E-commerce Business
Another client of Digital Exits is an online store that specializes in paleo and primal foods. Its target market is a section of the population that is interested in health and wellness, fitness, peak performance, and dieting. The company’s foods are carefully selected to ensure that the customers get only healthy and delicious meals that meet its rigorous standards. It also publishes paleo diet recipes and guides to its community of readers. The company earned a revenue of $822,309 and an income of $35,277. The owners of this company were asking $115,000 to sell the company.
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