Based on my experiences, honesty, transparency, and direct communication can dispel any preconceived notions one might hold. It’s plausible that you’ve encountered a somewhat untrustworthy business broker and subsequently felt apprehensive about their intentions. Therefore, if you ever ask me why you should pay me to sell your business, my answer remains the same: You shouldn’t, if you can sell it yourself at its market value and in addition have the time to do so.
However, this article highlights why you may need an online business broker. Most business owners I work with have never undergone the process of selling a business. How can you be adept at something you’ve never attempted? After over 2 decades in the M&A field, overseeing hundreds of deals, it’s evident that numerous business owners lack the knowledge of how to go about selling their online business.
And that’s perfectly acceptable because your primary focus is running your online business to sustain a livelihood for your family, contribute to your community, and support your employees. Selling your online business is a job in itself, just like handling your taxes or managing your retirement accounts. Most people rely on professionals for such tasks. Why then would you attempt to handle the sale of your most valuable asset on your own?
Selling a business is a distinctive process, unlike any other buying or selling endeavor. You can convince someone to purchase shoes, a car, or subscribe to a newsletter, but you can’t persuade them to invest hundreds of thousands to millions of dollars and accumulate debt.
Consider the following questions:
- Do you understand how to value an online business?
- Can you evaluate your business financials effectively?
- What essential information does a buyer truly require during the initial discussions?
- Can you put a deck together to effectively sell & market your online business?
- Do you know how to market a business discreetly?
- Are you familiar with all the different loan types and their implications?
- How would you find potential buyers for your business?
- Are you familiar with the process of screening and qualifying potential buyers?
- How do you manage a situation where a buyer continuously demands additional information yet refrains from making a formal offer?
These are just a few of the critical issues you should consider. Now, let me illustrate with a true story of a former client. They attempted to sell their beauty products Amazon FBA brand independently and encountered significant challenges. They provided extensive information to a potential buyer (competitor), only to receive a lowball offer after months of negotiations with the majority of purchase price in a note and an earn-out. They felt disheartened and all the information shared compromised their business.
They trusted professionals for various aspects of their lives but chose to handle the sale of their online business on their own, ultimately leading to frustration, disappointment and put their business at risk. While it’s not impossible to sell your own business without professional help, it’s rare to do so successfully, except in cases involving employees or family members.
In our case, we listed the Amazon FBA beauty products brand and received multiple offers and was able to get over $100,000 above asking price for the business with 95% cash at close and a 5% note for 12 months. The buyer needed an SBA loan and closed the transaction in less than 90 days. We facilitated the process, working tirelessly to ensure a successful outcome for both parties.
So, why should you hire a business broker? Because this is a one-time event, and there are no second chances. It’s crucial to work with an experienced professional who has a track record of successful deals. A broker can save you time, money, and effort, allowing you to focus on running your business while they handle the intricacies of the sale.
We have more than 20 years of expertise in the field of M&A, specializing in the sale of online businesses, hybrid ventures with a significant online presence, and established brands. We have sold hundreds of eCommerce, SaaS and Amazon FBA brands over the years ranging from $250k to over $30 million. We take a boutique approach and only focus on 12-18 high quality listings at a time so that each business owner receives the benefits from our experience and personalized attention.
Remember, you’ll only pay us when the deal is successfully concluded. So, let a seasoned broker take the reins and navigate you through the intricate world of selling your online business.