Sell your app.

Flippa's latest data puts the median app sale price at a multiple of 2.52x revenue or 2.93x profit. However, individual sales can differ substantially depending on a number of factors. These include the app's revenue model, profitability, growth, and user engagement, as well as the diversity of its customer base.

Industry benchmarks only provide guidance when determining the multiple that an app could sell for. The characteristics of an individual app, as well as market conditions, are key influences. A profitable app with strong customer retention and growth potential, with positive organic search metrics that keep advertising overheads low, may sell for a higher multiple than an app with fewer active users, higher customer acquisition costs, and lower revenue.

To increase the multiple that a seller can ask for when selling an app, they should aim to optimize their app store listing to boost user engagement and market positioning, use onboarding and personalization to improve customer retention, and build a strong brand and online community.

They should also compile clear financial records and document key operating processes before listing the app for sale or approaching buyers. For a specific app, recent sales of comparable businesses operating in a similar category can provide a more useful guide to market potential than applying a single industry-wide multiple.

Selling an app can take a few weeks or several months. Factors that influence how long it takes to sell an app can include the business's size and complexity, the maturity of its customer base, financial performance, asking price, and market demand. While an app can attract a buyer quickly after listing, the whole sales process includes preparation, valuation, listing, negotiation, due diligence, and final transfer.

Online marketplace Flippa states that the closing time from listing for online businesses, including apps, varies depending on the size of the business. As a guide, the media closing time for apps valued at less than $50K is 15 days, while for businesses valued at more than $250K, the median closing time is 73 days.

One way to potentially reduce the time it takes to sell an app is to prepare clear and accurate documentation before listing the app for sale. Detailed financial records, as well as information outlining the ownership of the app's code and its intellectual property, plus performance metrics, can enable buyers to perform due diligence more quickly. Having information about users, revenue sources, operating costs, and key business processes readily available can also help answer buyer questions and avoid delays.

To sell an app, the seller prepares the business for sale, establishes an asking price, chooses a sales method, engages with potential buyers, completes due diligence, and transfers the app and its associated assets to the new owner. The methods a seller can choose to sell an app include through an online marketplace like Flippa, via a broker, or as a direct sale.

Selling an app through an online marketplace like Flippa allows a seller to create their own listing, engage directly with prospective buyers, facilitate due diligence, and finalize the sale themselves. A broker service handles the sales process on behalf of the seller. A direct sale means that the seller reaches out to a potential buyer themselves, such as a competitor. The most appropriate sales method will depend on the seller's confidence in negotiating with buyers, the level of support they would like, and the size and complexity of the app and the transaction process.

Whether a seller chooses a self-service listing option, a broker, or a direct sale in order to sell an app, they should prepare detailed financial and operational documentation before starting the sales process. Well-organized financial records, user and revenue data, app-store information, analytics, and intellectual property documentation improve buyer confidence and facilitate due diligence. A clear picture of the app's financial performance will also help generate a realistic valuation.

An app can be sold either via a listing on an online marketplace or with the assistance of a broker. One method is not better than the other; the right sales approach will depend on the size and complexity of the app, the seller's confidence and ability to facilitate a sale, and the level of support a seller wants.

Listing an app on an online marketplace like Flippa involves the seller determining a realistic valuation, creating a listing, responding to buyer inquiries, negotiating, and managing the transaction process. They can choose different levels of support, such as running display ads or managing confidentiality via a non-disclosure agreement (NDA). A marketplace offers access to a large pool of prospective buyers to sellers comfortable managing the sale themselves.

Using a broker service to sell an app provides hands-on assistance in managing the sale from valuation to final transfer. Brokers help with identifying and screening buyers. They often have their own networks of buyers and investors to target.

One factor a seller should consider when deciding whether to list an app on a marketplace or whether it is better to use a broker is cost. A broker service typically involves higher upfront fees. Both a marketplace listing and a broker service incur a success fee if the app sells. A seller should balance the costs they are prepared to pay with the service they need to achieve a sale.

A seller can get a valuation of an app through an online valuation calculator or from a broker. In either case, the seller provides financial and performance information about the app. The size and complexity of the app may influence which method is most appropriate.

Free valuation tools such as Flippa's online calculator provide an indicative valuation of an app based on information the seller inputs. This will typically include the app store listing and information about the app's financial performance, growth, and customer base. Sellers can use this valuation as a guide before deciding whether to create a sales listing for the app on the marketplace. A seller may also get a valuation of an app via an online calculator, then may decide they need a more detailed analysis from a broker.

Getting a valuation of an app from a broker provides a more personalized and detailed valuation. A broker may consider factors such as revenue, profit, user numbers, growth, retention, intellectual property, operating costs, the level of owner involvement, and comparable sales. The valuation may also be influenced by the broker's analysis of the market for such an app, as well as their confidence in finding a suitable buyer. A broker assessment may be useful for larger or more complex apps where the potential sale value is significant.

To prepare an app for sale, a seller needs to organize financial, performance, technical, and operational documentation. This information allows prospective buyers to assess the business and complete due diligence.

When preparing an app for sale, key information to collate includes:

• Financial records, such as profit and loss statements, revenue, expenses, and payment processor fees, where appropriate.
• Performance data, for example, numbers of downloads, active users, and revenue per user.
• Customer information, such as customer numbers, retention, churn, and acquisition costs.
• Technical documentation that details the codebase, hosting, infrastructure, developer processes, and any third-party services.
• Intellectual property records that demonstrate ownership of the code, trademarks, domain, and any other relevant brand assets.
• Operational processes, which could include suppliers, contractors, and staff, as well as details of standard operating procedures (SOPs).
• App-store information, including Apple App Store or Google Play listings.

Preparing information before listing an app for sale can help any subsequent transaction run more smoothly and prevent any unnecessary delays. Clear, accurate documentation can also improve buyer confidence. The prepared information is also useful for the seller to establish a realistic valuation. Inputting information into a valuation calculator can provide an indicative asking price, alongside market analysis of comparable sales.

Selling an app with Flippa involves preparing the business for sale, creating a listing, engaging with buyers, facilitating due diligence, and transferring the assets. The steps to sell an app with Flippa typically include:

1. Prepare the app for sale. Organize financial records, performance data, user metrics, intellectual property, and operational documentation.
2. Establish an asking price. Information such as the app's revenue, profit, growth, users, and retention, alongside analysis of comparable sales, will inform the valuation. Flippa's free valuation tool can provide an indicative guide.
3. Create a Flippa listing. The listing should include information about the app, such as financial performance, business model, users, growth, and details of the assets included in the sale.
4. Connect with potential buyers. Flippa provides AI-supported matching tools to help connect sellers and buyers. Respond to buyer questions and provide additional information as required.
5. Complete due diligence. Enable a prospective buyer to review financial records, analytics, customer information, intellectual property, source code, and other business assets. Sellers can choose to require buyers to sign a non-disclosure agreement (NDA) before viewing sensitive information.
6. Agree on the terms and complete the sale. Once a buyer is confirmed, the parties agree on the sale terms and complete the transaction, with the seller transferring the app, accounts, source code, intellectual property, and other assets included in the agreement to the new owner.

If a seller wants more support to sell their app with Flippa, they can engage a broker. A broker provides a personalized service to help support all stages of the sales process, from valuation to final transfer of the assets. A broker may have access to a personal network of buyers and investors outside of the online marketplace.

Flippa handles confidential user and revenue data when selling an app through confidentiality settings and non-disclosure agreements (NDAs). A seller can control what information is provided to prospective buyers at which stage of the sales process, and can require buyers to sign an NDA before viewing certain information. Flippa's terms of service state that financial, traffic, user, and other business information provided by sellers remains the seller's confidential information unless it is made public or disclosed to an approved buyer under an applicable NDA.

When listing an app with Flippa, a seller can use a confidential listing so that more sensitive information is only available to prospective buyers who have signed an NDA or where the disclosure of the information is approved by the seller. An NDA could restrict access to information such as the asset URL, asset name, full listing description and information regarding revenue, such as profit and loss statements. Flippa also recommends making customer information anonymous before supplying it to buyers.

A seller of an app should consider what information is appropriate at which stage of the sales process. Generally, customer information, source code, and other commercially valuable data should only be shared during the due diligence process rather than making it publicly available on the listing. For an app, buyers may need access to analytics and performance information to verify things like installs and revenue. Flippa recommends read-only access to developer accounts for this purpose, so buyers can verify information without giving them control of the account.