If you’re currently evaluating how to retain the services of an experienced website broker or business broker to sell your online company, such as an e-commerce store or an Amazon FBA business, you’ve probably already weighed the pros and cons of doing it yourself versus hiring a business broker.
The truth is that in many major sales it is beneficial to retain the services of a website broker who can assist you will all aspects of preparing your company for sale and the sale directly. However, not everyone is appropriate for working directly with a business broker.
There are trade-offs to using a business broker including the qualified professionals at Website Closers. One such trade-off is that you cannot sell just any old website. Not every website will have sufficient value to make it worth the broker’s time to invest in getting to know your site and preparing it for prospective sale.
Your site must be making enough money that it is valuable enough for you to sell and valuable enough for the website broker to sell to make a profit that is worth their time. This, of course, will depend on the individual broker’s requirements and specifics.
But you certainly should have invested some time in getting to know your own numbers and understanding that you are generating consistent revenue. For some brokers, this could mean that your website is making several thousand dollars per month consistently. Other brokers deal only with high-value websites that are making seven figures on an annual basis.
You need to do research about the business broker that you intend to work with to ensure that you have the right fit. If you just started your e-commerce site and have not built in a lot of time to promote or grow it, then you likely won’t be able to use a broker.
Furthermore, if you have an established business that has been around for some period of time but is not generating enough or consistent revenue in order to appeal to a broker, you likely won’t be able to use one. It could be better for you to sell your site on your own or through a marketplace. You might even be deciding to sell your business because it’s not making enough money yet, but make sure you do your research to figure out whether there are things that you can change. Some indications that you need to rely on a broker for the sale of your business include;
The experienced business brokers at Website Closers know how hard it can be to make the decision to sell your company, but once you have elected to do this you need the support of business brokers who know the landscape and who remain committed to doing what is in your best interests.
If you have never had a business valuation before, you might need to rely on the services provided by your online business broker to clarify that you are all on the same page and that you have done all of the necessary leg work to enhance your multiplier as much as possible.
Do the Advanced Work to Get Ready to Sell
One of the most critical aspects of selling your online business, whether it’s selling an Amazon FBA business or selling your website, is taking a good look at your own financials.
This step alone can tell you whether or not you’re on track
You need to have a clear perspective about the work you have done in order to organize financials and present a compelling picture to possible buyers. When you have this information organized and up front and if an ideal buyer comes along, it will be that much easier for you to negotiate this into a sale or to illustrate that your asking price is indeed fair.
Looking disorganized does not bode well for a prospective seller because the possible buyer might assume that this will be indicative of the overall experience of working with you. You need to be prepared in advance and should have the services of an experienced online business broker as soon as possible after you decide to list the company for sale.
This way you’ll know what to expect and can avoid common missteps that could slow down or block the sales process altogether. One key way to feel as prepared as possible for your business sale is to consider business valuation. Valuation of an online business, including an Amazon FBA business, is slightly different from the valuation process of a brick and mortar company.
What Should I Do Before Getting a Valuation?
Keep these key ideas in mind before you engage in business valuation:
If you are disappointed when you discover the estimated value of your company, don’t give up hope. There is still the possibility that you could take some critical planning steps in order to enhance what is on the line for you and your business. The sooner that you talk to an online business broker, the easier it will be to figure out whether or not now is the right time for you to accomplish your underlying goals and how to best proceed with this process. Schedule a consultation with Website Closers today to learn more.
We know how this process works from end to end and how to make it easier for you to accomplish your goals from the time of listing all the way through the final sale.
You probably feel like you already have enough on your plate, maintaining profit and sales while keeping your business running. No matter how long your business has already been present on Amazon, there may come a time when you want out. To exit your Amazon seller account successfully, you’ll need to do plenty of legwork well in advance.
You will need to think about what could be a fair price and the unique assets that your company holds at this point in time. With so many factors influencing the listing price, doing your homework and getting a strong hold on valuation methods goes a long way.
If your Amazon marketplace business is already successful and you have sold relationships with suppliers and a steady stream of product that regularly gets sold, this in and of itself can be appealing to buyers. But to understanding what makes an Amazon business sellable, you should also have plans in place to cut down on your own involvement in this business so that you can step out and hand over the reins to the new owner.
You must understand one of Amazon’s key policies, which is that seller accounts can be transferred, but this process is usually made that much easier by hiring an experienced online business broker who knows the ins and outs of transferring an Amazon account.
Prospective buyer will be considering numerous different aspects for a profit stream that is predicable in the future. The buyer will thereby pay the purchase price as the multiple of anticipated profits. If you can show a consistent amount of product from reliable suppliers, in conjunction with the ability to list in many different relevant product categories and high customer feedback, your business may have major curb appeal to a prospective buyer.
A well-run seller account that has a strong history of positive comments from Amazon seller performance team, access to high demand or semi-exclusive products, proper operational processes already put in place and profitable sales, a major multiplier may be applied to the possible sale price. No matter how you determine to negotiate your online business for sale, you are selling the amazon based business rather than a legal entity in most cases. You’ll need to know a couple of key facts before moving forward with your online business sale, including that gross margins determine price, your accounting books must be in order for someone to do their due diligence and figure out whether you are accurately presenting information about the company.
You’ll need to document all of your business processes and put as many strategies in place in advance to show that you have tried to remove yourself from the business and ensure reliable product sources. All of these tools and tricks can be instrumental for helping someone who is in the position of getting ready to sell their business. An Amazon based business can seem exciting at the outset, but when it comes time to move on, make sure that you have all of the appropriate tools in place to make this transition as smooth and as effective as possible while retaining a profit.