Are you looking to sell an FBA business? In recent years, the incredible rise of Amazon and its Fulfilment by Amazon model has meant that the platform has become one of the leading ways for entrepreneurs to develop an online business.
Is it time?
Before you look to sell an Amazon FBA business, the first question you should ask yourself is “Is now the right time?”. This is often a difficult one to answer, but some basic requirements include:
- Ensuring the business is profitable
- Is at least one year old (ideally three)
- Is unique within the marketplace
- Has strong reviews
- All financial books and accounts are in order
Of course, these are just basic guidelines, so you should chat with an Amazon FBA broker who will be able to help you determine the best time to sell.
What is it worth?
The idea of selling an Amazon FBA business is to ensure that you get the best deal possible. That is why the next step is to understand what it is worth. Current estimates are seeing the market pay between two and four times the annual Seller’s Discretionary Earnings (SDE). This is called the multiple.
That means to work out a rough calculation of what your business is worth, you should multiply your net profit by two to get the minimum value and four to get the maximum. However, this is a general rule of thumb and there are other factors such as the age of the business, product diversification, attractiveness, and more. An Amazon FBA broker will be able to help you determine a more accurate multiple.
Begin the selling process
If you are happy with the valuation, it is time to sell your FBA business. This can be quite a complex and time-consuming process, which is why it is always advisable to utilize an Amazon FBA broker. They will have the knowledge and experience to make the process as smooth and effective as possible.
In order to attract the best buyers, you want to present yourself as professionally as possible. Developing a clear prospectus that details all of the facts and figures about your business can help you to stand out from the crowd. At Acquisitions Direct, we take the time to put together presentation materials to showcase your business to potential buyers.
When a buyer is interested, the next stage will likely to be to negotiate the price. This can always be a tricky process but having a minimum price in mind will ensure that you do not sell for lower than you should. Your Amazon FBA broker will be able to help you with this process, getting you the best deal possible.
Transfer the assets
The final stage in selling an FBA business is to transfer the assets to your buyer. This process will depend on the country you operate in, but in the vast majority of cases, this is a simple transaction. An Amazon FBA broker will be able to guide you through this process.
Looking to sell an FBA business?
Are you looking to sell your FBA business? We know how confusing and emotional the process can be, which is why we’re committed to ensuring you get the best deal possible. As the oldest internet brokerage business firm on the web today, our highly experienced Acquisitions Direct team is on hand to help you every step of the way. If you are ready to sell now, and looking for an online business broker, we are here to help.
Acquisitions Direct is a nationally recognized internet business brokerage firm that brings together Buyers and Sellers of Internet based businesses. With over 375 successful business transactions in the past 15 years ranging from $250k to over $20 million, our team of experienced 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.
Want to find out more? Get in touch today!
How Much is Your Amazon FBA Business Worth?
Our 10 Step Amazon FBA Sales Process
We require that all Sellers execute an exclusive listing agreement which authorizes Acquisitions Direct to use its best efforts to market the Internet business and to identify prospective buyers for the business. This agreement also allows Acquisitions Direct to furnish material to the prospective buyers describing your business and introduce prospective Buyers to you. During this step we will assist you with the disposition of your business and consult with and advise on the aspects of any proposed sale including selling price, terms, conditions of sale and structure of the transaction.
With your support, we will prepare and package the business for marketing. A professional sales presentation is developed to support the marketing efforts of our Acquisitions Direct team and a targeted marketing program is implemented to initiate the sales process.
It’s best to start this process BEFORE a buyer is found. During due diligence, the buyer will want to take a complete look under the hood of your operations and perform a deep analysis of your financials before sealing the deal on their potential investment. Have these areas completely documented and organized to help ensure a smooth due diligence process and prevent any missteps in front of the prospective buyer.
Potential buyers are located through the rollout of the customized marketing program, as well as from existing relationships with known potential online business buyers in Acquisitions Direct established database of prequalified candidates. An interview is conducted with all buyers to qualify and, if approved, a conference call is setup to introduce them to you, the Seller, for you to give a deeper description of your online business.
If a buyer is interested in your business, Acquisitions Direct will secure a letter of intent (LOI) and/or offer to purchase (OTP) from the buyer and present the letter of intent (LOI) and/or offer to purchase (OTP) to you for your consideration.
Time to shine! Due Diligence is where the prospective buyer evaluates your business operations, performs an analysis of your financials and has the opportunity to ask open ended questions regarding all functions of your firm. Having these documents prepared in advance will make this as easy and painless as possible. Our advisors are there to guide you and solve any open issues the buyer may present.
After due diligence is complete, the buyer’s attorney will draft up an asset purchase agreement. Acquisition’s Direct will send you the Asset Purchase Agreement and other needed closing documents from the buyer for your review and approval.
Once the sale is ready to be finalized, Acquisitions Direct advisors will coordinate the parties involved with the closing. The business is then legally transferred to the new owner(s). A transition period is usually established to allow the new business owner to get acquainted with the daily procedures and get all operations established.
You did it! Your business is sold. During the first few weeks after closing, transitional support is often offered to help the new owner feel comfortable with the operation. This may include on-site training, or could be as simple as a weekly conference call. The length of time designated for transitional support is decided and agreed upon prior to the closing.
Why Choose Us To Sell Your Amazon FBA Business
- 92% close rate in 2022!
- We are 100% performance based!
- Oldest running online brokerage firm
- 100% Internet focused, specializing in online businesses
- Our brokers have all ran and sold online businesses
What Our Client’s Say
Before working with Acquisitions Direct, we had never sold a company. After completing the free evaluation, we hired Acquisitions Direct to sell our business. Bob from Acquisitions Direct quickly presented several qualified buyers and helped us choose the best fit. He helped both my company and the buyer work through some struggles to get to closing. We strongly recommend Bob from Acquisitions Direct to anyone looking to sell their online business.
Working with Acquisitions Direct was a great experience. Bob kept the sale moving forward quickly and provided daily updates on progress. Buying a business is a difficult step and Bob was there to guide us through from start to finish. It truly was a pleasure working with the brokerage team at Acquisitions Direct.
Acquisitions Direct did an excellent job of guiding me through the sale of my business, keeping me accountable and following up on action items. The sale of my business went as smooth as any transaction I have been involved in the past. I highly recommend Acquisitions Direct Broker services!