How To Ensure Your Adult Website Acquisition Is A Success
When going through an acquisition, you must make a couple of steps, from researching the market and doing your due diligence to creating a communication and transition strategy to acquiring an adult website that is as smooth and painless as possible.
In this article, Adult Site Broker will walk you through how to ensure the success of your adult website acquisition. We will look at what an acquisition is and why it is beneficial for you as an acquiring entity, as well as offer our tips on how to make your adult website acquisition a success.
What Is an Adult Website Acquisition?
A business acquisition is when one company, the acquirer, buys a majority or all of the shares of another company, the target, to gain control of its operations and assets. So why do acquiring businesses choose to buy?
As a business owner who already owns profitable adult websites, you may choose to acquire another adult website because:
Growth: As the adult industry looks to grow in the next few years, acquiring adult sites that can help you secure your place in this market is beneficial. These sites can increase your company’s size and market presence and diversify your revenue streams. They can also help a small business diversify its products and become a larger organization.
New Skills and Technologies: Acquiring a company with skills or technologies a business lacks can be quicker, cheaper, and more effective than developing them independently to expand or enhance a product offering.
Market Share: Acquisitions can help companies secure greater market share, new resources, and more revenue in the same industry.
Economies of Scale: As a business increases the amount of product it produces, distributes, and sells, average costs can fall, which reduces the unit cost.
Tax Benefits: Acquisitions can provide acquiring entities access to tax benefits.
Top Acquisitions In The Adult Industry
Two of the biggest acquisitions in the adult entertainment industry include Ethical Capital Partners (ECP) and WGCZ Holding. These companies have consolidated a great deal of the industry through their acquisitions, and between them, they own some of the biggest and most popular adult websites.
ECP is a private equity firm located in Canada that owns Aylo (formally MindGeek) and has a diverse portfolio of adult entertainment websites, including premium member sites, tube sites, adult games, marketplaces, and adult advertising networks, through their acquisition of Aylo, who owns Brazzers, Pornhub, Redtube, Nutaku, TrafficJunky, and Adult Force. ECP dominates the adult entertainment industry and owns a range of adult sites, allowing for growth, staying relevant in the adult industry, and diversifying its revenue streams.
WGCZ Holding is a Czech company that owns some of the biggest names in porn, including XVideos, BangBros, Penthouse magazine, and Private Media Group. They have created a diverse portfolio, including porn sites, adult TV networks, magazines, and porn games allowing them to grow and protect their revenue as the adult industry evolves and new trends and technologies become popular.
Tips For Ensuring Your Adult Website Acquisition is A Success
As you start acquiring a new adult site, there are specific steps you need to take to ensure the acquisition is a success. Below, Adult Site Broker has set out our tips for success:
Make Sure it Meets Your Business Needs
As a business or individual looking to acquire an adult site, look at the monetization models, niche, and place in the market to ensure they fit your business’s needs and company culture. Although diversification is good and gives you a more vital place in the adult entertainment market, you want to ensure alignment between the adult sites you already have and those you want to buy.
Communication Strategy
Having a clear communication strategy for all involved goes a long way. This includes outlining the roles of each party, which assets will be acquired, how the acquisition will take place, and how it will be communicated to all shareholders (including your loyal customer base). Acquisitions can take anywhere between 2 months and longer. Still, clear communication, including answering questions about the adult site’s finances, structure, or operations, can ensure the acquisition happens smoothly and quickly.
Due Diligence
As a business choosing to acquire an adult site from a seller, you must do your due diligence on the website you want to buy. This could include looking at the website’s previous financials to clarify its potential earnings and profitability, examining its SEO, traffic, user engagement analytics, and the adult sites’ legal compliance with regulations.
Before you buy an adult site, you want to ensure that the website is a strong earner and has a good place in the market for growth.
Leadership and Resources
You want to ensure adequate leadership and resources during a business acquisition to help smooth the transition.
For example, suppose the acquisition’s aim is growth; as the new adult site owner, you want to ensure the finances and resources are available to help with your new adult website’s SEO, traffic, and paid and organic promotion.
Integration Action Plan and Team
No matter the size of the acquisition, ensuring that a team is in place to help with the transition period and that an integration action plan is shared between all parties can make the transition period smooth. This should include any systems, structures, or operational changes that will happen to the adult website that has been acquired.
Conclusion
To wrap up, whether you are looking for an opportunity to gain a market share in the adult entertainment industry or looking for finances to help diversify and grow your adult website portfolio, acquiring a profitable adult site can offer you the opportunity to do so.
However, before you buy an adult website, which you have put your time, energy, and resources into, you should make sure that the acquisition is the right fit for your company culture and business goals. You should also consider whether buying an adult site offers you the resources, operational, and strategic value you seek. Once you have started acquiring the new adult site, you need to outline and communicate a clear integration action plan and support throughout. You want to ensure the acquisition is as quick and painless as possible for you and your company.
If you want to buy an adult website, Adult Site Broker is here to help.
Here’s More from Adult Site Broker:
What To Consider in Buying an Adult Site
How To Make Your Porn Site A Success: What Can We Learn From Pornhub?