Fire Sale
A fire sale refers to a situation in which a business is selling its assets at heavily-discounted prices in order to generate cash as quickly as possible. The seller often has some financial obligations that he needs to meet quickly.
In websites, fire sales are not very common because it usually costs much less to own a website than, say, own real estate. It is less costly to own a website than a real estate property which has a mortgage and property taxes due each month. However, just like real estate owners, personal financial difficulties can sometimes cause domain name and website owners to seek to sell their assets as fast as possible.
Of course, a fire sale provides a great opportunity for domain and website investors with cash to pick up good assets at prices under their fair market value.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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