One of the biggest decisions when it comes to selling an online company is whether or not to use business broker. The biggest concern is usually centered on the broker’s fee, but the fee is more than offset by usually a higher sales price, a lower time commitment on your part and a much higher likelihood that your business will be sold. To help you make this decision, you must first understand what an intermediary can do for you, and you must also understand what an intermediary expects from you, the seller.

Buying or selling a company is a complex activity that requires one unbiased party to coordinate the activities of the buyer and seller; a business broker has the expertise and training to assume that role. A business broker is not a sales person, but a business professional that facilitates the transaction to the benefit of his or her client, be it the buyer or seller. Many transactions fail when the buyer and/or seller try to conduct the sale of a business without the aid of a business broker.

In order to help you sell your online company, maximize the selling price, terms, and net proceeds, and handle all the details, there are some things an intermediary needs from you. The better you understand these expectations, the more smoothly the sale of your company will go. Here are some of the things an intermediary will expect from you:

Your time. In addition to continuing to run your business while it is on the market, you will need to spend some time with the intermediary to assist with the sale. This will involve returning his or her phone calls and being readily available to handle any questions, requests, and details.

Communication with your top employees. If you are planning to sell your company, you shouldn’t keep it a secret from your key executives and legal advisors. In fact, these people can provide crucial information and therefore should be working with both you and the intermediary from the time the company first goes up for sale through the transaction closing.

Networking. Developing a list of possible acquirers for your company will ultimately be the responsibility of the intermediary, but he or she can certainly use your help and suggestions. If you supply names of potential candidates and provide the intermediary with industry magazines and directories, it will speed up the selling process by increasing the number of possible purchasers. Plus, these extra tools will help educate the intermediary on the nature of your company.

Constant information. During the three to twelve months that it may take your company to sell, things will be changing within the business. As the seller, it is your responsibility to keep the intermediary informed of any changes that take place.

An open mind. Because it is your business, you may have a specific type of buyer in mind. But you may be limiting yourself. Your intermediary may have some suggestions of buyer types that you may not have thought of; keep an open mind and trust that the intermediary knows what he or she is doing given that the intermediary has facilitated the sale of many businesses like yours.

Your patience. It takes three months to a year or more to sell most companies, so you can’t expect your business to sell overnight.

Cooperation. When the company is actively for sale, the intermediary will schedule visits and conference calls with prospective acquirers. You may need to act as the middle man to communicate to management exactly what the intermediary requires and expects from such visits. For example, for an ecommerce business, a visit will most likely consist of a visit to the production and fulfillment areas of the business.

Updates. Once the deal is turned over to your lawyer, you may assume the intermediary’s job is done. But taking the deal out of the hands of an intermediary at this point can be a huge mistake, as he or she can be a huge asset as the final details are being worked out. After all, the intermediary is familiar with the business, the buyer, and all that led up to the sale, so he or she can help with final negotiations.

Keep in mind that selling an internet related business is very different from selling a brick and mortar business. The internet channel utilizes very different skill sets for customer lead generation, order fulfillment, and customer service. The business broker you choose to help you sell your online business must have a detailed understanding of these unique skill sets in order to effectively facilitate the transaction.

Acquisitions Direct, formerly known as eBizMLS, is a business broker specializing in online business acquisitions. To receive a FREE business valuation from Acquisitions Direct, please CLICK HERE and fill in the required information. We will respond to your inquiry within 48 hours. There is no commitment on your part and all information sent and/or discussed is confidential.

As an independent online business owner, you may think that selling your business yourself is good idea; after all, you know your company best, and you will maintain more of the control. However, after you examine the steps necessary to sell your business yourself, you may reconsider. Selling an online company is a complex activity that requires a third party to coordinate the activities of the seller and the buyer; a business broker has the experience and training to assume that role. Many business transactions fail because the seller tries to exclude a business broker from the selling process. A business broker is not a sales person, but a business professional that facilitates a business transaction to the benefit of his or her client. Online business brokers are well versed in the steps of the sales process and know all the parts that need to come together to make the sale happen. Many buyers will quickly walk away from a sale due to frustration, or if they feel that the seller is not being honest with them. Having a broker helps alleviate some of these concerns.

If you are thinking about handling the sale of your company by yourself, keep in mind that the following are only some of the many actions you must take in order to coordinate the sale of your business on your own:

Prepare your company for sale : The sale of an online company involves making sure the business looks good on the outside and runs well and is profitable on the inside. A business broker can help you get your business records in order, as well as to recognize which improvements need to be made.

Establish a price: Naturally, you want to get the best possible price for your online business, but you must understand that the price is determined by the current marketplace. With the help of a business broker who will use industry-tested valuation techniques, you can make sure you get a competitive price for your business. Online business brokers have access to industry related data and also have the experience to make informed decisions about the listing price.

Market the company: Marketing your online company is one of the hardest parts of selling a business on your own. Not only do you have to develop a strategy, you have to find the best possible mediums through which to advertise. With the help of a business broker, who will use his or her networks of professional associations and buyer prospects, you can effectively spread the word about your company to the best possible buyers. One of the most effective mediums for marketing a new business for sale is a network of interested buyers. An online business broker has thousands of contacts that are looking for their next investment. By utilizing a business broker, you gain access to this network, along with the proper sales tools and presentations that are necessary to effectively sell an Internet business.

Maintain your privacy: When you are selling an online business, it can be difficult to maintain confidentiality. There are certain things you can do to protect yourself and your company, including using nonspecific terms, screening prospective buyers, and asking all parties involved to sign confidentiality agreements. A qualified business broker can help you with all of these things.

Present the company: Overall, business brokers have the best network of potential buyers, they know how and when to advertise, and they can get the best possible price for a company. They also know the right features to highlight, such as your sales generation model, if your business is driven from Organic Ranking vs Paid Listings and many other considerations. Different buyers may react negatively or positively to certain aspects of a business. The way the business is presented needs to reach all potential buyers not just one.

Choose a qualified buyer: Just like there is the perfect buyer for every house, there is the perfect buyer for every online business. You just have to find him or her. This is another aspect of selling your company that a business broker can help you with. Because of their knowledge of buyer behavior combined with their access to buyer databases, business brokers can be a real asset when it comes to finding the best buyer for your company.

Negotiating the sale: One of the most important parts of selling your business will be the actual business transaction. From negotiating the price to spelling out the terms to other aspects of the sale, there is a lot to it. A business broker will be able to assist you with every step of the process, including managing the paperwork and keeping track of minute details.

Overall, if you are planning to sell your company, a business broker can save you significant money, time, and general work involved with the sale. Although business brokers are not magicians, they will market your business only to qualified buyers, advertise the company in the right mediums, and do other things to ensure that you get the most for your business.

When you look for a business broker, search for someone who has a detailed understanding of the buying and selling of online companies so he or she can effectively facilitate the transaction. By choosing an online business broker that is performance driven, you will also ensure that you are working with someone who will fight to get you the highest return on your business.

Acquisitions Direct, formerly known as eBizMLS, is a business broker specializing in online business acquisitions. To receive a FREE business valuation from Acquisitions Direct, please CLICK HERE and fill in the required information. We will respond to your inquiry within 48 hours. There is no commitment on your part and all information sent and/or discussed is confidential.

Whether you are selling your online business because you have reached retirement, or you just want to go down a different road, there are some things you need to do to ensure that the company is ready for sale.

Keep in mind that even if you take the proper steps, the sale of an Internet company can take from three months to over a year. Selling or buying an Internet company is a complex activity that requires one party to coordinate the activities of the seller and the buyer, and experienced business brokers have the experience and training to assume that role. In fact, many business transactions fail when the buyer and/or seller try to exclude the business broker from the sale. A business broker can help you with the selling process, every step of the way.

The first thing you should do to get your online business ready for sale is get a realistic idea of what it is worth. Many business owners mistakenly think the value of the company is based on revenue; instead, it is the cash flow and earnings before interest, taxes, depreciation, and amortization that determine the price. The future potential also plays a role in determining a company’s worth. You can get an assessment of your company’s worth from a number of sources, from local accounting firms to investment banking firms to regional business brokers. If you are selling an online business, it is best to get an evaluation from an Internet Business Broker. Business Brokers that specialize in the online industry can provide additional guidance and also consultations to help prepare the business for sale. From there, take the following steps:

Get your books in order . Buyers usually like to see at least three years’ worth of financial statements, and the more solid information you can provide (such as CPA compiled or audited statements), the more likely a buyer will be interested in your company. Pay specific attention to accrued expenses, depreciation and inventory, the balance sheet, and contracts with customers, vendors, partners, and employees. This is the most important step in the process for both the buyer and the seller. Having this information correct and buttoned up will speed up the selling process.

Make sure you have a clear understanding of the true profitability of your business . Provide clear documentation for all your expenses, including nonoperational expenses and expenses that you incur on an infrequent basis.

Look at all your contracts . Examine your supplier and customer contracts to make sure the terms and conditions will not expire or require renegotiation right after the sale goes through. If there are any contracts that serve little purpose or cause unnecessary stress or strain on the company, terminate them.

Record company policies and procedures. Ideally, you should create a policies and procedures manual that will help the incoming owner know exactly how to best run the company. This should include unspoken and undocumented techniques.

Review your leases . If you have real estate leases that tie your business to a specific location, make sure they do not require renegotiation or expire over the time you are planning to sell your company.

Solidify your workforce . If you foresee any personnel changes, try to make them before the sale goes through. A company with a stable employee base will be more attractive to potential buyers.

Prepare for the sale . Once you have gone through all the above steps, make sure you have a strong advisory team in place. In addition to an accountant and an attorney, hire a business broker. These advisors will guide you during every step of the sale, and they will help determine the type of buyer for your online business. These experts will also help you maintain confidentiality during the transaction.

When you look for a business broker, search for someone who has a detailed understanding of the buying and selling of online companies so he or she can effectively facilitate the transaction.

Acquisitions Direct,formerly known as eBizMLS, is a business broker specializing in online business acquisitions. To receive a FREE business valuation from Acquisitions Direct, please CLICK HERE and fill in the required information. We will respond to your inquiry within 48 hours. There is no commitment on your part and all information sent and/or discussed is confidential.