Search

Home > Amazing FBA > Selling your ecommerce business ($5M+) -advice from Providium
Podcast: Amazing FBA
Episode:

Selling your ecommerce business ($5M+) -advice from Providium
Category: Business
Duration: 00:47:57
Publish Date: 2019-06-28 00:00:51
Description: How to Sell your Ecommerce business for a $5M+ valuation What do you need to do if you are selling your ecommerce business worth over $5 million? Buyer types for $5M+ businesses Selling your ecommerce business for a higher valuation is in some ways actually easier than selling a smaller business. Certainly, there are more buyer types for higher-value businesses. Buyer groups - individuals who pool their money - informal Investor groups Family offices Wealthy family has generational wealth - instead of outside investment co, create internal office Click below to estimate the value of your business Estimate your business value Before you start selling your ecommerce business: Get very organised! Financials Ideas and plans for growth Operational standpoint What would right way to scale be? Supply chain etc. Think through what buyer will want to know your opinion on Common Q from Buyers “if you weren’t selling your ecommerce business and you wanted it to double in size, what would you do? This can be pretty deep Acquiring new products Finance logistics Marketing Timescale for preparing to sell your business If it’s within a few months: Not a lot you can do to change your business that will have a big impact 6-12 months out Understanding what market will want - and get it done Eg you have a brand on Amazon, get the trademarks secured Start expansion process Eg sell a lot of kitchen products under brand - 3 new products find a source for them Put them into motion Global Wired Advisors can help buyers dig into the process If you are selling your ecommerce business for higher values, you want to move buyers to thinking beyond just multiples. Global Wired Advisors help buyers strategise around this. What does that look like? Wholesale Off amazon Other marketplaces Sell on website International Global wired does a free consultation Get seller to start thinking about what does it Do ecommerce business owners have to be based in USA to sell their businesses? No it’s a very international market - because of how Amazon works and technology. There are owners based all over the world. They may live in Spain and sell in USA or vice versa. Selling businesses across the globe is actually quite easy. There are a lot of international buyers for US businesses and vice versa Recent trend: successful amazon sellers are very focussed on non US markets, because the US market for amazon is so saturated and competitive. Most successful sellers are in multiple countries. What do you need to think when selling your ecommerce business worth over  $10 Million? Private Equity Similar to smaller businesses but it’s amplified. The buyers know exactly what they want and don’t want. More money is at risk. The right Buyer for your business starts to come in a more specific fit. Eg PE group that really loves beauty products A great business but which doesn’t do beauty won’t sell to them. Businesses fall into buckets and  it’s about a right fit between your ecommerce business and the acquiring company. If someone’s going to pay $20m even though cashflow is in place even more organised Tightly managed supply chain Brand protected Having a team helps to sell your business Having actual employees and infrastrcurtue is more important How do multiples relate to size? In general: Larger businesses tend to sell for larger multiples For various reasons Right now (Nov 2018), larger businesses selling quicker than smaller businesses. Larger interest from pro Inv groups in amazon than two years ago Many more smaller businesses are coming to market - more than 1.5-2 years ago In reality each business will be different - valuation is based on individual attributes Larger businesses go for as much as 5X cashflow/EBITDA Whereas $500k-1m more like 3X cashflow
Total Play: 0