Deciding to work directly with a business broker for the purpose of selling your online company is an exciting proposition as it means you’re moving closer and closer to cashing in on a business that you have worked so hard to generate, tweak and build. However, it is equally important to make sure that you vet the person you are thinking about bringing in to your process so that you can verify that you have done everything possible to protect your interests and to set your business up to sell for maximum profit.
One of the most important questions you’ll need to consider early on in this process is how the broker typically works. Many people have the question, how long does it take an internet business to sell? But it’s important to realize that the amount of time it takes to sell a website depends on numerous factors, such as the complexity and the overall size of the deal, the existing business model for the company and the market the business is in. Asking your business broker upfront, such as those working directly with Website Closers, could give you an idea of the average time to sale for online businesses they list.
This is a relatively good indication of the existing buyer network they have and whether or not your business broker can successfully value businesses appropriately. The size of the business, of course, will have a significant impact on how quickly it takes to sell but typical sales times can be anywhere from 30 to 90 days.
There are two key questions that you must be prepared to ask your business broker before signing an agreement to work together.
Good brokers will have an established network of professionals. If they do not provide a service directly they should be able to recommend someone who can help you with your question or concern. One way that this might come up will have to do with legal assistance. Good brokers will have some experience in working with attorneys or drafting legal agreements and will understand some of the creative deal structuring and term negotiation issues that come up.
You should also be notified by your broker about the importance of getting independent legal advice to review all documents prior to the time they are signed. Any broker who argues that you do not need an attorney or a lawyer or says that you do not need to use asset purchase agreement should be avoided.
You’ll have to reveal some very important inner details about your company to go through the sale. This is what makes confidentiality of chief importance in the sales process. You don’t want customers, staff or competitors finding out about the potential sale of your business.
A professional business broker will hold confidentiality in the highest regard and will generate interest in your business only by using teaser information. Interested buyers will also have to be appropriately qualified before receiving any of these details, such as by illustrating that they already have the financial means to purchase the company. Finally, a broker should also require that any interested buyer sign a nondisclosure agreement before getting inside details about the company. This helps to vet the network of prospective and interested parties to ensure that you are getting the most from each action that you take in hiring a business broker.
Website Closers is proud to have established a legacy of working hard in this arena and ensuring that your interests are always protected.
Building your business to the point of a successful six or seven figures can be an exciting rush and form of exhilaration for an entrepreneur. Unfortunately, far too many people overlook the importance of creating an exit plan. In the rush of doing things on a day to day basis, it’s easy to overlook the importance of developing a comprehensive exit plan and strategy for passing things on to a new owner.
Be Prepared for a Possible Exit
Anyone who has encountered a family business might have experienced the sudden departure of a person in a business without a proper exit plan. Unconventional or unexpected exits can do significant damage to the business, especially if the person was intending to sell the company and in the sudden departure of a person leaving it was revealed that the right strategies and tools had not been put in place. It is always best to have a plan or things can quickly become very complicated for those continuing to operate inside the business or to grow the brand.
An exit plan outlines who will be responsible for some of the most important components of running the business on a day to day basis. If you are contemplating selling your business, then your exit plan might also include further details about what kind of person would be taking over the company, what employees might be transitioning into different roles to take on greater responsibilities, and the transitionary period in which you would be able to train the new party buying the business.
At What Point Do I Need to Develop an Exit Plan?
The truth is that as soon as you launch the business, you should create a comprehensive exit plan. Your exit plan can be adapted based on whether or not you have chosen to depart voluntarily, such as selling the company or retiring or involuntarily such as suffering due to a disability or business concerns being tied up in a divorce. All of these issues are serious and worthy of sharing with your business broker. If you have not already developed a comprehensive exit plan, now is the time to sit down and think about how the company would be different if you were no longer physically there to run it. This can also be an important exercise for identifying whether or not your company is in a position to be sold. This is because the success of the company might currently be contingent on your own abilities to protect and to serve on a daily basis. You might not realize how much you have become tied into the company and the key component of the strategies and systems until you remove yourself, for example, to go on vacation or to take a sabbatical from work.
If you do not have other team members, procedures, and tactics in place to ensure that the company continues on an upward trajectory, this could be catastrophic not just for your own business interests and financial future, but for your ability to paint a compelling picture when listing your company for sale with the help of a knowledgeable business brokers. Establishing an exit plan is one of the most important steps you can take to protect the brand and value you have worked so hard to build.
There are many different reasons why you might choose to work with an experienced and knowledgeable business broker. Business brokers can make the process of selling your online company, e-commerce website or software as a service business, much more effective.
Business brokers can assist with many aspects of the process of selling and buying business, including providing ideas on marketing, the best valuation methods, pricing, assistance with negotiation, documentation for closing and other consulting as obstacles arise.
The four main reasons that someone chooses to partner with a business broker like those working at Website Closers include, confidentiality, saving significant time in the process of selling the business and waiting through prospective buyers, getting access to the network of a large potential buyer pool, and the broker’s objective view and ability to help negotiate if challenges arise. This means that someone selling a business should be prepared to sign a listing agreement.
What is a Listing Agreement?
A listing agreement is usually the first step for the business broker to begin formally searching for a buyer. All of the terms of the relationship are clearly laid out in this agreement, and an exclusive listing enables brokers to use greater resources to identify the right buyer for the business. Furthermore, the fees will also be outlined in the listing agreement.
These are usually based on the sales price and payable only if and when the company is sold. This can give you a lot of peace of mind as the seller of a company and knowing that you are working with experienced and professional business brokers who understand this process and are motivated to not only sell your company but to sell it to the right buyer.
Listing agreements usually have a minimum time period, which could be altered based on your individual circumstances and the business broker’s background. The listing agreement is a legally binding document.
What is a Tail Provision?
It’s a good idea to have your business lawyer review this before you choose to sign the agreement to formally work with the business broker. One of the most confusing aspects for a new business seller of a listing agreement is a tail provision.
A tail-on agreement means that after the agreement has ended, there might still be a clause stating that if you sell to anyone else within up to 24 months that the intermediary business broker introduced you to, you still would be responsible for paying a successor commission fee. You’ll want to read the fine print of any listing agreement to make sure that you thoroughly understand what you are signing on to and so that you have a chance for your attorney to review it in full.
In some cases, your business broker might even share commissions or cooperate with other intermediaries under their pre-arranged terms. The decisions about splitting that success fee is negotiated at the time of the arrangement. It can be hard to figure out what in your best interests when retaining the services of a business broker, but thankfully, hiring the right lawyer and business broker can make it easier for you to approach the process of establishing a sale schedule for your business and getting maximum revenue upon the time you sell.
If you’re interested in selling your website and the associated company, there are two different options available to you. The first is to hire a website broker to sell your site. The second is to do all of the legwork yourself.
What Does a Broker Do?
There are a lot of tasks that must be accomplished if you choose not to hire a website broker to sell your site. These include getting a valuation, finding someone who is interested in purchasing a business in your niche, negotiating a price and closing out the deal. Because of the significant amount of work required and the high level of possibility that you could make an error, it is much easier to start searching for how to hire a website broker to sell your site.
In the process of choosing how to hire a website broker to sell your website, it’s important to realize that what you are essentially looking for is a business broker. A website broker evaluates all aspects of your website in order to help you effectively list and sell your company.
This means that a website broker evaluates your traffic, determines how much of it is organic versus paid, your official positioning in search engine rankings, how resilient you are to current changes in the market, the level of competition that currently exists in your niche, and the various revenue streams you have available to you through your website.
Brokers and Business Valuations
Of course, when selecting how to hire a broker to sell your website, another aspect of this professional will help you with is determining the amount of revenue that you’re making and how all of these other factors are built into what your website is truly worth on the open market.
A website broker who is knowledgeable about selling websites will look for possible issues that could hold back the value of your site. This means that you get an expert’s insight into small and big steps that you can take to increase the overall value of your website on the open market.
Many of these are short term elements and changes that can significantly boost the value of your company. All of this information gathered by your website broker is then compiled into a memorandum that the business broker uses. The business broker will use this information to craft your listing and to speak to prospective buyers.
Another major reason to choose to work directly with a business broker such as those working at Website Closers is because of the broad network they already have of prospective and serious buyers. It is not enough to simply list your company for sale online and hope that prospective buyers will come.
Rather, you need to have a leveraged network of people who are highly qualified to own and prepare to step into these business ownership roles. Your business broker vets these potential buyers and identifies those who are interested. The business broker plays a crucial role at this point in the process because they will interview these individuals and eliminate those who are not suitable.
The broker then continues to assist you with all aspects of closing out the sale, such as negotiation and guidance on whether or not you should take a deal.
You may also work with attorneys and other professionals, but your broker will also play an important role in looking at the contracts for both parties to sign and ensure that all possible issues have been handled in advance.
You must be prepared with how to sell your Amazon FBA account before you initiate the valuation process. The more educated you are about what you can anticipate, the easier it will be for you to transfer your accounts to the buyer and to exit the business as quickly as possible. There are different dynamics involved in transferring every Amazon seller account, which is why we leverage our years of experience as online business brokers to help you figure out what is most appropriate when determining your next step and helping you to obtain the maximum multiplier and overall profit from selling your online business.
The support of an experienced online business broker, like those working at Website Closers, can give you peace of mind, confidence, and assurance that you are in good hands from the moment that you contact us. There are five different things you need to consider when listing your Amazon seller account for sale.
The first has to do with your gross margins. The price that you receive for selling your Amazon FBA account is largely driven by your gross margins. Which means it’s beneficial to remove any unnecessary overhead conflict, employees, travel expenses, or equipment. Often this is very minimal to begin with because Amazon FBA business owners have very few pieces of physical inventory.
The second step to preparing your Amazon FBA seller account for sale is to ensure that you have reliable product sources. Securing contracts to give you clear access to products that you source will help to enable a buyer to see the benefits.
The third step to listing your Amazon seller account for sale is getting your accounting and financials in order. This means having at least the last three years of profits and sales available. Take out any unexpected liabilities like customs, taxes, sales taxes, and unpaid supplier invoices as much as you can. Before removing yourself from the business, you need to document all of the business processes, including replenishing inventory, sourcing, accounting, remittance and collection of sales taxes, any provider solution relationships you have, and day-to-day operations. This will make the transition to the new owner as smooth and as effective as possible.
Finally, consider hiring an online business broker as well as an attorney to assist with the sale of your Amazon business account. There are many different aspects of conducting due diligence and determining valuation. The sooner that you have an online business broker and a lawyer to help you with every aspect of these sales, the easier it will be for you to effectively sell your business and move on to your next exciting venture. Don’t find yourself overwhelmed with the process of selling your Amazon FBA account. Instead, consult with our knowledgeable online business brokers.
Thinking about listing your online business for sale, but aren’t sure whether now is the right time or are you having many different questions about whether you should sell your company at all.
Don’t worry if you feel that you are not sure whether or not it’s a good time to sell your online business. Many people are concerned about what if they are wasting their time and the site doesn’t sell at all. It can also be confusing to figure out exactly what documentation you need to have prepared already in order to interest buyers or what final fixes and strategies can help you get as much money as possible out of the sale.
Knowing What it Really Takes to Sell the Company From Beginning to End
Unfortunately, even if an offer does come through, there are plenty more challenges that can emerge before the deal is even closed. A buyer has to do their own due diligence and you don’t want to end up losing time with people who aren’t serious about purchasing your company. Far too many people who are interested in listing their online business talk to numerous different people who appear to be interested in purchasing the company but were not really going to buy it.
And there is plenty of work that has to be completed after the sale is agreed upon. You have to ensure that the buyer is aware of transfer hosting, taking ownership of the domain, verifying that all of the content and search engine tools are working and switching all the site’s monetization.
Don’t Get Overwhelmed When Listing Your Company for Sale
Because this can be overwhelming, even for someone who is thoroughly experienced in managing these aspects of an online sale, it is far more beneficial to schedule a consultation directly with an online business broker.
Selling an Amazon business, an e-commerce business or any other type of website requires a clear and deep understanding of what makes your business viable and valuable from a buyer’s perspective. Ultimately, this makes the sale easier once you find an online business broker.
Our online business brokers working at Website Closers will help you avoid many of the most common challenges that appear in the process and we can also give you further information about what you might anticipate as far as challenges in your sale. We will also be there to answer any of the questions that you bring forward over the course of the entire experience so that you know that you are always in good hands with an experienced team who will keep you advised of obstacles, challenges, and opportunities.
At Website Closers, we take our opportunity to assist you with a smooth transaction and maximum recovery of compensation in the sale very seriously. This is why we work so hard to maintain our reputation. Check out the testimonials and reviews on our website to learn more about what people have experienced working with us.
Before working with an online business broker, do your research. While a website can help you figure out whether or not this is the right team for you to work with, reviews go a whole lot further since they can give you insight into the exact experiences other people have had with that team.
Reviews tell the story from the customer’s experience so you can have a sense of what you can expect if you choose to work with Website Closers. With so many years in business, we recommend reading our reviews so you can see how we work and the value we provide.
Are you curious about Website Closers reviews as you select the appropriate online business broker to help you grow your company? The support of an online business broker is invaluable when determining whether now is the right time to sell your online business like an Amazon FBA business, a Shopify business or other ecommerce company, but the resources provided by knowledgeable online business brokers can also help you for the duration of the sale.
At Website Closers, we have extensive experience helping sellers of all different types of businesses to accomplish their goals. Website Closers reviews reveal that our customers are thrilled with the overall results.
We often aim to provide clear information upfront to prospective sellers, to help them navigate the complexities of the selling process, and to provide them an overview of all of the different opportunities and options available to them. One such example of a customer thrilled who provided Website Closers reviews comes from Lan.
Lan says that words could not express the gratitude for the help provided throughout the process. Although this was a business transaction, the brokers at Website Closers went above and beyond and provided a thoughtful and patient response. Website Closers reviews show that consumers who have bought or sold businesses online, see the value in working directly with an experienced and a dedicated broker. Since this person will be so intricately involved in the selection of the methodology used for business valuation all the way through to the final sale, it is critical to have someone in whom you can place your utmost confidence for the entirety of the transaction.
Selling a company is not just a business transaction in and of itself. It is often a very personal process and one that can become extremely tense during the negotiation process if the right buyers have not been properly screened. The insight of a broker to help at each stage and to answer questions promptly puts the seller of the company at ease as far as understanding what to anticipate.
At our company, we pride ourselves on Website Closers reviews and testimonials from customers who have been thrilled with our overall approach and who provide us with the continued commitment to keep serving this section of the market. We assist with deal financing, selling websites, and have sold more than $300 million dollars in web and tech companies today. We hope to continue that tradition with further Website Closers reviews submitted directly by users just like you.
If you’ve been attempting to understand how to value an internet business or a website, you may need the support of an online business broker. The valuation process is one of the most important steps in selling your online business and it is one you should be aware of well before you list the company for sale.
While having physical assets associated with your internet business can make things more difficult, it is often hard for people who operate an internet business to understand just how crucial the business valuation is and how this will influence their appealing nature to buyers.
At Website Closers, we have extensive experience in brokering and valuing the sale of internet businesses with a number of different types of monetization strategies, including ecommerce businesses, Amazon FBA businesses, and more.
We have also sold businesses with high earnings multiples, ensuring that the seller of the company gets as much as possible out of the selling process. There are several different challenges presented to deriving a fair business valuation online. The first of these is the poor use of valuation techniques or the misunderstanding of valuation techniques.
The second of these is using or gathering the wrong information for inclusion in an analysis; and the third is overlooking extraneous factors or the bigger picture that could influence the valuation of the company in a positive or negative way.
There are several different ways that a business can be valued and at Website Closers we discuss this with you in our initial consultation so that you can have a better perception of how the business valuation will influence your bottom line. A discounted cash flow analysis is one option but these prerequisites are rarely satisfied with consistent or established internet businesses.
Precedent acquisitions is another approach to benchmarking an online business valuation. With this method, you are looking for comparable metrics including multiples of revenue or earnings. The primary prerequisite for an accurate precedent transactions analysis is access to any transaction data. This can be very difficult if this information is privately kept.
The most common method through which online businesses are valued today is known as earnings multiple. The robustness and simplicity of this methodology in the face of very rare or a lack of comparable data is extremely important and this is why many website brokers turn to this process to ensure that the seller and the buyer alike understand the methodology being used and its overall benefits. When determining that it is time to sell your business, it is valuable to have a conversation with an online business broker before deciding to move forward.
The right online business broker can have a significant impact on how easily you understand the sale and how confident you feel about your company being listed online. Schedule a consultation directly with an experienced online business broker at Website Closers today to get a better perception of what you can anticipate over the duration of the process
Thinking about selling your website based business but you’re not sure where to start? One of the most crucial components of making the final decision to list your website for sale and in recovering as many funds as possible through this process, includes valuation.
Valuation gives you a good perspective on whether or not now is the right time to sell your business. But the process of website valuation often feels overwhelming for business owners.
A primary goal for many business owners who establish a successful company is to eventually sell their business to a different entrepreneur. The entrepreneur who purchases the business may want to take control of a company that already has established success without many of the headaches of building an entire new business.
For this reason, many people who have structured a website to a certain point to achieve profitable numbers and systems behind the scenes means hiring an online business broker.
Online business brokers will work with investors who already have an interest in purchasing your company to help match you to the right one. How websites are valued is a very common question asked of online business brokers. A very basic formula is behind the concept of business valuation.
First of all, this usually begins by looking at a 12-month net profit average and then using a multiple. Here at Website Closers, we’ll explain to you the entire process of valuing your website based business so that you know what to expect. You must be able to show, as you get closer to higher multiples, that your business is growing in a big way month over month. This helps make you even more appealing to prospective buyers.
You might see some people using a different model but at Website Closers, we are upfront with exactly how the multiples work and what you can anticipate. Looking at factors such as your average net profit, add-backs and expenses can all help you to determine what will influence the overall website valuation.
The longer company history you can show in your business, the more attractive it is to prospective buyers so long as it is showing an upward trend or moving at a consistent profit level. The more your business is going upward, the easier it is to use a higher multiple. Although you can’t do a great deal to increase the amount of time that your company has been in business, you can invest in necessary purchases early on in your company to prepare yourself for eventual sale.
A consultation with an online business broker like those working at Website Closers will help you to understand the various metrics that are used in website valuation and how to best set yourself up for success. Whether you’re looking to sell a Shopify or other ecommerce business, or an Amazon based FBA business, the insight of an experienced business broker is instrumental in helping you feel more confident about selling your company sooner rather than later.
Whether you are planning to buy a business or to sell your company, you want to engage with an online business broker as soon as possible in the process.
Business brokers tend to be paid by sellers, which is something valuable to keep in mind if you are currently a buyer. As a seller, having a business broker who cares most about making the transaction happen seamlessly for you removes a lot of the pressure.
That being said, a knowledgeable online business broker can also help purchasers to narrow the search to the kind of businesses that meet their search criteria.
A Simpler, Better Process for Selling Your Business
Brokers can streamline everything for sellers from marketing the company to buyers, through the pricing process.
In addition to verifying that the broker’s personality is in line with your individual needs, it is good to evaluate them on many different perspectives. First of all, figure out whether or not the broker has a website.
You will want to visit their site to figure out how simple it is to use, how quickly it loads and the types of primary businesses are offered for sale. You will also want to ask for details about how this site is involved in the business sale process, including how many brokers work in the office, how many locations in the network rely on that site, how many qualified buyers are listed in the database, and how many companies are currently listed on the site overall.
How to Review Someone’s Track Record to Determine Next Steps
The broker’s latest track record is also an excellent place to begin asking questions.
A great deal can be learned about online business broker’s level of success and experience as well as the type of marketplace entering by requesting answers to the following questions:
Why Marketing Methods Matter in Selling Your Business
Another common question you will want to ask an experienced online business broker is how they market the listings. One of the primary reasons that a seller is interested in working with an online business broker is to gain support and leverage through a marketing program. Ask what other listing sites are used and where their classified print ads are placed in terms of the listings.
An online business broker should be open to discussing the benefits of choosing to put together a sale. This process typically begins with a valuation of the company and your online business broker can most likely help you with this phase as well.
At Website Closers, our process is focused on you from end to end- we get a sense of your goals and use that to outline a plan to accomplish what you need. You’ll know you’re in good hands with us.