The Best Step-by-Step Guide for 2023
Now is the best time to do anything on Amazon FBA Business Brokers, whether it be a seller or selling your Amazon business. Because of the record-breaking sales, it’s safe to say that the e-commerce industry is in great swing nowadays and is projected to grow further in the future.
Many business people have realised that selling their established business is an excellent option to forge life-altering wealth. Buying and selling e-commerce businesses has become a trend nowadays.
Now there are numerous ways to sell your e-commerce business. You can sell it directly, use the flipper service, or put it on the marketplace. But the best way is selling through a Business broker who would manage your business and prepare to sell it.
In this guide, we will discuss the following aspects:
1.Reason to Sell your E-commerce Business
2.How to Make your Business Worth Selling?
3.How to choose a broker?
4.How to Sell your business using a broker?
5.How to Work with a Broker?
Reason To Sell Your E-commerce Business
Selling your Amazon FBA business is not easy, as you have already invested much of your energy and hard work. But there are many good reasons to sell your Amazon business, such as:
1.You might need money to fund another business that is likely to work better than your current one.
2.If you are no more committed to your Amazon business, that is also a good reason to sell it and move on.
3.You might also realize that your business costs a lot, so you can just sell it and use or fund that money in some other life adventure.
4.You can consider these reasons to sell your e-commerce busines.
How to Make your Business Worth Selling?
A person will never invest in such a big project if it doesn’t seem attractive. We have seen many business people who start a business to sell it in the first place. While others decide to sell it later and move on.
The main thing to recall is that if your business is not valuable for you, it won’t be valuable for others either, which means there is no point in selling it.
You need to reach a specific standard before selling your business to make it worthwhile for others and valuable for yourself.
Here are things you can do to make your business valuable and worth selling:
- Your business should be grown to sell for good value, but it should not be maxed out that there are no opportunities left for the new buyer. Leave some untouched territories for them, like going for international projects. This would intact the buyer’s interest in your business as it would have some new adventures for him to discover.
- All your documentation should be authentic and in good order, such as records of SOPs, financial documents, accountancy reports, tax filings, IP credentials, etc.
- When someone is buying your business, it’s not just that; in fact, they are also buying the association with your suppliers. The buyer checks if the suppliers deliver at the right time and deliver high-quality stuff or not. So make sure to have the best suppliers on board.
- If your 50% of sales are from just one product, what happens if that product is suspended or your source cuts it off? So going for diverse options will keep your business alive, growing, and free of risks. This will reduce all sorts of risks for buyers and make your business an attractive proposal.
- If you intend to sell your business, so for that you have to make a legitimate brand with proper documents, IP, and trademark. Because it’s not just about selling stuff, it’s also about building a worthy followership and gaining loyal customers.
How To Choose A Business Broker?
A good Business broker is not only one who builds an association between the seller and buyer. They vigorously work to prepare and position your company for the best possible valuation and exchange. A dutiful broker improvises your business, brings the best buyers, and conducts an M&A legal representation for negotiation.
If you want to know how to choose a broker to sell your business, here are a few tips:
1.It is essential to ask how many projects they have worked on, how many businesses or companies they have sold, and basically all of their track records.
2.Ask them how many current listings they are handling to make sure they have enough time for your work or not.
3.Check reviews of their previous clients for more validation. Look if their previous clients are happy with their work or not.
4.While interviewing a broker, ensure you are comfortable speaking to them and discussing things with them. This is essential as you will discuss your requirements and objectives with this person.
5.Don’t hesitate to ask your broker how they plan to deal with and promote your business. A good broker will confidently tell you about his plans and sale strategies.
6.A good broker will always ensure your privacy and deal with things confidentially.
Hopefully, these tips will help you to choose a good broker for your Amazon FBA Business.
Selling your business is a momentous decision that can have extensive consequences. Therefore, working with a professional, experienced broker is helpful. They have experience from all sides, so they know what a buyer thinks before buying or what a seller thinks before selling.
Advantages Of Working With A Business Broker
There are numerous benefits of working with a broker. But they mainly depend on the quality of your broker. A professional entrepreneur should always hire experts, such as suppliers, manufacturers, copywriters, translators, web developers, and photographers. And when it comes to selling the most precious asset of your life and getting a worthy exit, you need to hire an expert for this as well, an expert broker.
The following are the benefits of working with a broker:
1.Estimates the expert valuation for your business:
Before you put your business or company on sale, you need to know its worth. An expert broker will provide you with an expert valuation. A good broker will do a thorough breakdown of your financial records.
Your business procedures, sale history, market, and opportunities allow the broker to adequately value the business and determine the opportunities to maximize your business value before taking it to market.
2.Expert marketing of your business
Expert Business brokers are fully aware of how to present and market your FBA business to the right buyers in the right way. They know how to erect growth opportunities, conceal casualties, and package and market your business for sale.
Obviously, presenting your business in front of buyers is just half of the job. The other half is treating the buyers, negotiating with them, sending proposals and much more. Most sellers don’t have time for this. So brokers are worth paying.
3.Expert support and guidance
Selling your business is not easy, as it takes sweat and tears to reach that level to make your business sellable. So the broker’s role is crucial as his job is to make the deal between the seller and buyer smoothly.
The right broker will direct you through the entire process and inform you of every decision.
How To Work With A Business Broker?
Every business person has their own goals, motives, aspirations, and ideas. And while selling a business, people have their own thoughts behind it.
Here’s the process of working with a broker:
1. Analysis and Valuation
The broker signs an NDA before having access to your data.
It basically means read-only access to your data like Seller Central, Shopify, or any other place you used to generate earnings.
It might as well need access to your accounting software like Quickbooks, Xero, or Amazon tools like Sellerboard. After having access to this data, you can also help them understand your niche, products, fulfilment, IP, marketing, industry etc. A deeper analysis of all this will help a broker value your business more accurately.
2. Preparation for Market
While preparing your business for the market, the broker will help you prepare. The broker will ensure that you have all the documents and data needed in the proper format and properly packed. The rest is the broker’s homework about how he has to present to the buyers.
Then the broker will design a sales prospectus for your business. This is an essential booklet which shows how great your business is and tells how valuable this purchase will be for them.
3. Negotiation and Closing
After putting an offer in the marketplace, you will get many interested buyers who will send a “Letter of Intent”. It is an inoperative letter that tells that we want to buy your business and writes their offer in it.
The Business broker assists you with the LOIS and connects you with
Legal counsel. After you find a reasonable deal and sign an LOI, you have a period ( generally 30-40 days) of exclusivity in which you agree that you will not sell the business to anyone else. Similarly, the buyer also conducts their analysis.
And when the exclusivity period ends, the buyer submits a formal offer letter to buy the business. With proper consent, the deal will be sealed.
Paying 10 to 20% of the final deal to a broker might initially sound like a difficult task. But when you experience this, you will see that it’s actually worth it. Because you would never market and sell your business as a broker does.
So, this is the perfect guide for you if you are about to sell your Amazon FBA business.