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 925-785-3118 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|
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
|Peter Siegel, MBA, BizBen Founder, Lead Facilitator - ProBuy, ProSell
Founder & President Of BizBen.com (since 1994) & BizBenNetwork.com. I am the Lead Facilitator for the ProSell & ProBuy Programs on both platforms. I consult daily with business buyers, owner/sellers, and intermediaries daily about buying and selling businesses. Reach me direct at 925-785-3118.
|Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California
Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.
|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.
|Lee Petsas, Business Broker - Southern California Area
UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.
|Michael Floorman, Business Brokerage, 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, New Century Escrow - Escrow Services In 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.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
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