In an advanced, technologically savvy era, virtually anything can be done, purchased or explored via cyberspace. From paying bills, to buying clothing and groceries and having them delivered straight to the front door, large corporations and small businesses alike have made lives easier by going digital and allowing people to run errands and accomplish their daily tasks without leaving their homes.
The industry of eCommerce businesses is booming, with the market more than doubling from 2014 to 2015. With a hot market, owners can look forward to enjoying a price in the range of 4 to 6 times their adjusted net income, understanding that the more money the business makes, the higher the multiple will be. When preparing to sell an e-commerce business, an owner must take the time, approximately 3 or so months, to prepare their eCommerce online portal for sale.
During this period of time, a seller should compile all financial records, including their profit and loss income statement from the previous 3 years, (4 or more years for larger e-commerce businesses), and a document that details everything from the market that they serve, to staffing, industry trends, customer base, and the products/services that the business sells/provides online.
The more information that is gathered and included in this will not only attract potential eCommerce website buyers, but also give them a clear picture of what to expect when acquiring the business, therefore speeding up the selling and training processes with the buyer.
Potential business buyers who are interested in viewing this information and are seriously inquiring about an e-commerce business should first sign a non-disclosure agreement to learn more about the business.
As a seller, it is highly encouraged to obtain representation by an eCommerce business broker professional to help you compile all necessary documents that will help you sell your eCommerce company. By having a business broker intermediary represent you, this will drastically decrease the amount of time it will take you to be prepared to sell your online business and will save you a lot of time and stress along the way.
An eCommerce broker specialist will typically charge between 10-12 percent of the selling price of your company, but that shouldn't discourage you from using one because they will help you secure a higher selling price and save you months of time and effort.
Over 50 percent of all eCommerce businesses sell within the first 90 days of being posted, and that is most achievable by using a team of business professionals to help you every step of the way.
More Information About Buying & Selling eCommerce Online Businesses:
About This Author: Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) at BizBen (started in 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, business owners/sellers, brokers, agents, investors, & advisors). Phone him at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a puchase of) California small to mid-sized businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Michael Floorman, Business Broker, BTI, San Francisco Bay Area
Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Ryan Clark, Business Broker, Southern California
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Rick Carlson, Business Broker - Southern California
You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Buying An eCommerce Business: Tips About Purchasing eCommerce Businesses
When buying an eCommerce business several factors come into play: market position, competition, growth areas, recurring customer base factors and ratios, etc. On this BizBen blog post Peter Siegel, MBA (BizBen Director, Financing Expert) addresses some of these eCommerce factors for business buyers.
|Valuing A Business - Do You Add The Inventory Amount To The Price Or Not?
A business buyer asks how to handle the inventory amount in the purchase price of a business. Do you add the inventory value to the business value? Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor ) answers this question with the BizBen Network of advisors.
|Selling eCommerce Businesses: Great Tips For Online Website Business Owners
In an advanced, technologically savvy era, virtually anything can be done, purchased or explored via cyberspace. As the market continues to expand and flourish, eCommerce sellers can continue to reap in the selling of their eCommerce firms. Peter Siegel, MBA (BizBen Director) explores this topic.
|Tips For Faster SBA Loan Approvals For California Small Business Purchases
In this article on BizBen, business purchase financing advisor and SBA loan broker, consultant Peter Siegel (Business Purchase Financing Expert/Advisor & the ProBuy Program Director at BizBen) at 866-270-6278 shares his views of getting SBA loan financing faster for business purchase financing.
|How Do I Navigate Through The Negotiation Process When Buying A Business?
Negotiating the terms of a business deal is a delicate process, where one wrong move can cost you the business that you wanted to purchase. Peter Siegel, MBA (BizBen ProBuy Program) discusses the ins and outs of negotiations, and how to work well with the seller to get a deal done.
|Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason
The unfortunate truth is that approximately 50% of all small business sales transactions fall out. While failed transactions can happen for a many reasons, Peter Siegel, MBA (BizBen Director & Business Purchase Financing Expert) discusses the main reason deals fall through; steep asking prices.
|4 Reasons Why Business Brokers Do Not Cooperate With Other Brokers & Agents
Despite challenges in the business for sale marketplace, some of the business brokers who make a living by facilitating a deal between buyer and seller are known to stand in the way of a completed transaction because of some outdated ideas. Too bad they put greed ahead of the needs of their clients.
|Find Out Why 80% Of California Business Buyers Never Find And Buy A Business
First the dreaded statistic: 80% of all California business buyers looking to buy a small to mid-sized business in California never end up doing so! Peter Siegel, MBA BizBen Founder And Director at 866-270-6278 covers successful tactics all business buyers of small businesses should utilize.
|See All News, Tips And Events|