The length and profitability of a business are top concerns for anyone, but if you own an Amazon company and your ultimate goal is to sell it at some point, how do you decide when it’s the right time?
The Amazon business model is an increasingly attractive one, even in today’s marketplace in which there is higher competition. The truth of the matter is that people who have worked hard to build a solid Amazon business model may be able to cash in and move on to other ventures and goals after working with an online business broker like those found at Website Closers. Online business brokers are a crucial component of the process of determining to sell a business, but one of the most commonly presented questions to online business brokers working at Website Closers is how old an Amazon business should be before it is sold. Before Amazon business became a very viable business model, the minimum age that online business broker wanted to see was at least 24 months, which could give a good overview of what possible buyers could anticipate as they grew the company. While there are exceptions to each and every single rule, the purpose of the two-year model was used for many different years. Any online business that was younger than this was tremendously devalued due to the high risks perceived with younger businesses. However, even those sellers at that time might hold off and wait until the business was at least two years old before attempting to sell to get their own maximum value. This rule is no longer one that is applied strictly.
What can increase the chances of an Amazon business selling, even at a younger age, is having multiple products with a lot of room to expand and grow in and outside of Amazon as well as offline, and having a clearly defined brand.
Although waiting a longer period of time might enable a business in this position already to achieve a higher multiple than selling it right now, considering things from a buyer’s perspective and the solid financials you have now may be the right choice for you. It can also be a risk to wait too long to sell your Amazon FBA business particularly if increased competition occurs.
Although the younger a business is the higher a seller will perceive the risk to be with it, growth opportunities versus business age is a hard balance to strike. One of the best ways to ensure that this is the right move for you is to schedule an initial consultation directly with an online business broker working at Website Closers.
At Website Closers, we have a strong track record of valuing Amazon FBA businesses for sale, and we can help you evaluate the pros and cons of deciding to sell now versus in the future. Regardless of what you choose, you will have a better understanding of what is involved in the process and can make an informed decision for yourself based on our individual commitment and presentation of information directly to you.
We know that it is difficult to consider selling a business at any point in the business’s development, but our online business brokers will help you ensure that this is the right choice for you.