When Should I Sell My Online Business
In this episode we will be going over the following questions: Why would someone start an online business? How much will my online business sell for? What makes one online business with the same business model more valuable than another in the industry?
The Importance of Financial Statements
In this episode we go in depth on the 3 main financial statements: Income Statement, Balance Sheet, and The Statement of Cash Flows. We talk about some past experiences with our deals and road blocks we had to overcome due to business owners not keeping monthly financials.
Broker vs Marketplace
In this episode we go into the differences between listing with a broker vs listing your business yourself with a marketplace. When you are deciding to sell your online business through a marketplace or a broker, it is important to think the list of 7 variables we provide in this episode. We also talk about places where you should and should not list your online business.
The Investment Presentation
In this episode, we discuss how to build an investment presentation to showcase your business to potential buyers. We cover the 8 main sections we always include in our presentations: Executive Summary, Traffic Statistics, Financials, How the business generates revenue, Day-to-day operations and Owner responsibilities, Business-level statistics, Growth opportunities, Assets received in the sale, and a Seller QnA.
Market Your Business and Reach the Right Buyers
In this episode we break down how to determine the right target market to sell your business to. Once we break this down, we then go into how to market to these specific buyer groups: Individual/Partner Buyers, Direct/Indirect Competitors, and PE Firms. Marketing your online business to the right buyers is one of the most effective and efficient ways to sell your online business.
Common Buyer Financing Structures
In this episode we talk about the three most common financing structures buyers use when buying online businesses: SBA Loans, Seller Financing, and Earnouts. Each of these financing structures have pro’s and con’s that we highlight to ensure you take the best offer for your online business.
The Due Diligence Process
We discuss what you, a seller, should expect a buyer to look for in the due diligence process. The 3 most common components we see buyers look at are: Financial, Legal, and Operational. Each of these components have multiple examples included that a seller should look to provide a buyer in the due diligence process. Something to mention is the due diligence process varies from business to business and varies greatly from buyer to buyer.
The Closing Process
In this episode, we discuss what the closing process looks like when you go to sell your online business. Generally what we see is these five components: Set up and Fund Escrow, Draft and Review Legal Documentation, Execute Documents and Begin Transferring Assets, Release Escrow Funds, and Provide Post-Transaction Support.