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Make Sure You Sell Your Amazon Business for Max Profit

Posted by Richard Roberts in Articles

Are you interested in selling your Amazon business but aren’t sure where to start? Most Amazon sellers might not know at the point of founding their company that they are essentially creating an asset with their company, which is why you need to understand how FBA businesses are ultimately valued, how to uplevel the value of your FBA business before you list it for sale and the process of selling your FBA business with the support of an online business broker.

Do I Really Need to Know the Value Right Now?

Even if you don’t intend to sell your FBA business in the future, it is still extremely helpful to know the value of your business, in case things change down the road and you want the option. Experienced online business brokers like those working at Website Closers are here to help you when you intend to sell your company and are not sure how to proceed.

Working with a company who has an extensive understanding of the valuation landscape and Amazon FBA businesses can be very helpful. The valuations for FBA businesses are based on your monthly net profit times a multiple plus inventory at cost. Your online business broker will walk you through this process and help you understand some of the key metrics you might want to work on improving before you list your company for sale.

When it comes to inventory at cost, this includes all the landed cost of your inventory including shipping and packaging. If you have held onto plenty of inventory, this can be concerning to a curious buyer of your business because they won’t know whether or not the price is reasonable. This is why you will want to talk to your online business broker about several of the steps you should take prior to listing your company for sale.

It’s helpful to understand how to maximize the value of you FBA business. In an ideal world, you would be able to sell your business under one corporation or an LLC, since this would be an asset sale.

The essential product is your rank on Amazon. It is also a good idea to have a separate business bank account established already where all of the Amazon sales go out. No personal transactions help to distinguish that this is a business and not a personal bank account.

Make sure that you set up a separate bank account and a separate LLC or corporation now to make sure you are ready if you decide to sell in the future. Two things that you will need when it comes time to valuing your company and listing your company for sale are; a cash flow statement and an income statement.

Some type of an accounting software is hopefully already in your wheelhouse and something you just need to incorporate into clear documentation for the purposes of your buyers. This can go a long way towards helping you accomplish your goals and can give you peace of mind when it comes time to list your company for sale. Buyers will always want to see these financial records anyway, so it’s a good idea to have them on hand well in advance. Consulting with experienced online business brokers can clarify some of the more confusing aspects of listing an Amazon FBA business for sale.