The COVID-19 pandemic brought about an unprecedented shift in the online demand for goods and services. This catapulted an established goliath and propelled an already strong segment within their revenue stream to shine even brighter – Fulfillment by Amazon. The attraction of owning a business but not having to work out logistics, warehousing and maintenance of a platform to conduct business has opened the doors for many people to leave corporate jobs and start a business on Amazon. For the many business owners that have found success with their FBA business, cashing out now is a great option.
For most Amazon FBA business owners interested in selling their online business, using an ecommerce business broker is the best route to ensure a smooth transaction. This article will explain the top 7 benefits of going with experienced internet business broker when selling Amazon FBA businesses.
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- Understanding the Value of Your Business – There are a lot of factors that go into putting a value on a business. An internet business broker can help navigate through the P&L statement and identify opportunities to improve the valuation on your business. Working with an internet business broker will help identify true cash flow and denote what expense can be used as add backs, or expense that a new owner will likely not incur. This helps improve the valuation by showing the additional profit a new owner would have. With many years of experience, an online business broker will get the top dollar for your Amazon FBA business and walk away with more money. The most important piece is ensuring the accuracy of the financials you are providing. For more information on how to ensure your financials are clean and ready here.
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- Online Business Brokers Know What to Look For – A broker can help negotiate a better deal. They are experienced and trained to spot potential drawbacks within an offer and make recommendations on how to avoid them. Many business owners don’t have a lot of experience in this area and a private equity firm or aggregator could come along and easily take advantage of that. A buyer might quickly make an offer that sounds good, but the support of an online business broker will help maximize the offer and avoid pitfalls such as long notes or earn-outs. You worked hard to get ready to sell your Amazon FBA business and working with an Amazon FBA broker will ensure you get to enjoy the fruits of your labor.
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- Marketing the Business – An Amazon FBA broker will know how to get the business in front of the right kind of buyers and prepare a sales presentation package that attracts serious offers. An online business broker helps to vet potential buyers and answer questions so that the business owner can focus on serious buyers only. You still need to conduct your day-to-day business operations while you are in the process of selling, so it’s a huge help when a broker can limit distractions.
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- Buyer Database – Most Amazon FBA brokers have an established pool of candidates that have already expressed interest in that specific business model. From the seller’s perspective, having this database gives a great jump start, and from the buyer’s perspective they trust that the business has been reviewed and information is organized. Most online business brokers work on commission only, so they won’t take a listing that are not a quality business. A bigger pool of buyers also means potentially more offers and higher “cash out” price.
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- Due Diligence – One of the most stressful times when selling your Amazon FBA business is the due diligence process. An online business broker can assist with a check list for gathering up the necessary documents for this process and it’s a good idea not to wait until an offer is on the table to have the documents ready. A detailed list can be found here.
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- Connections – Just like the saying “it takes a village”, there are multiple parties that come together to ensure a successful sales process from start to finish. An online business broker has established connections with many of the parties involved and can put you as the seller in touch with recommendations for law firms and escrow agencies. Experienced business brokers will get the business pre-approved with the SBA as well. This help avoid many mistakes in this area that can lead to challenges in the sales process.
- Getting the sale across the finish line – So much can go wrong when you get to the final stages of selling a business! Trust an expert and work with an online business broker. They are there every step of the way to ensure things go as smoothly as possible and prevent potential consequences and the worst-case scenario of having a deal fall through.
If you think you are ready to sell your Amazon FBA business, contact an Amazon FBA broker at Acquisitions Direct. Acquisitions Direct is a nationally recognized Internet business brokers firm that brings together Buyers and Sellers of Internet based businesses. As the oldest internet brokerage firm on the web today, we have closed over 350+ successful business transactions in the past 19 years ranging from $100k to over $20 million. Our team of experienced online business brokers have what it takes to ensure a smooth brokerage process for our clients. Our brokers and advisors have all created, managed and sold their own online businesses giving them the experience needed to guide you every step of the way.
