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 $100k 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!