FAQs

Q: Do you sell Amazon FBA businesses?

Yes we have sold many Amazon FBA businesses over the years. Click here to get a free online business valuation.

Q: How long does it take to complete a valuation on my business?

Our goal is to have the valuation completed in less than 24 hours once we receive all the requested information.  Sometimes the valuation process can take longer than 24 hours if additional industry research needs to be completed or the business has a valuation above $5MM +.  Our goal is to provide the most accurate valuation possible on your business.

Q: How long have you been selling online businesses?

Acquisitions Direct was founded in 2002 and has been successfully selling online businesses since inception.

Q: Why doesn’t Acquisitions Direct accept low priced listings?

We pride ourselves on providing our clients with a high-quality, custom sales process.  A substantial amount of work goes into the sales presentation and marketing plan to sell a business.  This type of service is typically not cost effective for businesses priced under $100,000, and our buyers are generally looking for businesses that will have annual profits higher than those that would fall under that threshold.

Q: Do you have a few examples of companies that you helped sell?

Here is a list of our most recent transactions.  We have sold businesses ranging in price from $100,000 to over $15,000,000+.  Recently Sold Online Businesses

Q: What industries do you work with?

Acquisitions Direct has become a leader in the online brokering space with experience across all industries and business verticals.  The following are just a few of the industries that Acquisitions Direct has served:

Ecommerce Business

  • Apparel &  Jewelry
  • Baby
  • Books & DVD’s
  • Electronics & Technology
  • Home Products
  • Health & Beauty
  • Green Living
  • Sports and Fitness
  • Toys & Gadgets
  • Travel and Entertainment
  • Gifts
Technology and Service Businesses

  • Search Engine Marketing
  • Hosting and ISP
  • Shopping Cart Systems
  • Information Providers
  • Job  and Career Management
  • Real-estate  Listing Services
  • Lead Generation
Q: Why is your close rate so high?

Our knowledge of the marketplace demands and our experience enable us to promote high quality listings and businesses with potential.  We do not take every listing that approaches us to sell.  We advise our clients to make sure their business is ready for a buyer.  Our selection process, coupled with our experience, help us maintain our high closing percentage.

Q: Do you offer referral fees?

Yes please contact us and we will be happy to discuss our referral program with you. This program is subject to the execution of a referral confirmation agreement between the referring party and Acquisitions Direct. Participation in this program has certain restrictions which will be discussed with the referring party. All referrals that list with Acquisitions Direct are sold by Acquisitions Direct receive a referral fee at time of closing.

Q: Do you co-broker?

We will occasionally co-broker with select highly qualified brokers on specific listings.  Please contact us for more information.

Q: Do you recommend using an escrow company?

An escrow company should be used for all transactions with the exception of those closings handled by the buyer’s lender. Using a third party to handle escrowing buyer funds and conducting the close protects both buyer and seller. When using an escrow company the seller knows they will receive funds upon transferring the business over to the buyer and the buyer knows upon the transfer of funds they will receive ownership to the business they are purchasing.

Q: How long is due diligence?

The due diligence process usually takes from 2 to 4 weeks. The amount of effort and detail involved in the buyer’s review is driven by the complexity of the business and the dollar amount of the transaction.

Q: Can you notify me when new listings become available?

Yes, please fill out the contact us form here and and give us the parameters of businesses you may have interest in. Parameters include industry, approximate range of listing price, SBA financeable, etc. When listings that meet your criteria become available you will be contacted.

Q: What information do you need to do a valuation on my business?

We generally need a three year high level profit and loss statement as well and current year to date financial results. In addition a list of your domains, and a few operational as well as competitive related questions. This information should not take you more than about 30 minutes to develop.

Q: How long does it normally take to sell a business?

The average business sells within 4-5 months.  This will vary by industry.  We have seen businesses sell in as quick as 2 weeks to well over a year.  For more information on our sales process please check out our 10 Step Sales Process here.

Q: As a buyer, how will I know the seller’s financials are accurate?

Every buyer should perform a complete due diligence on any business they will potentially purchase. The due diligence process should include a review of merchant account statements, bank statements, supplier costs as well as tax returns. The key is to trace the cash from the merchant account to the P&L. Your CPA will help you develop an effective review process.

Q: How long is the contract for the listing agreement?

Due to the amount of time it takes to procure a buyer and move each business through the sales process, we cannot accept a shorter contract length than 6 months.  For more information on our sales process please check out our 10 Step Sales Process here.

Q: What will buyers look for during due diligence?

Buyers are looking to validate the accuracy of all significant information provided. This validation will typically include a review of merchant account statements, bank statements, a statistically sampling of supplier invoices, tax returns, 1099 and W-2 statements, supplier contracts, credit card statements for business expenses, etc.

Q: Will I have face to face visits with prospective buyers?

It usually depends on the desire of the buyer. The larger the price of the transaction the more likely it is that a face to face meeting will take place prior to the closing. Generally most interaction between buyer and seller is via conference call and email communication. The broker will facilitate all such communication.

Q: If there are no upfront fees, how does Acquisitions Direct get paid?

Acquisitions Direct is totally performance based. We are only paid when we sell your business at the asking price, or at a lower price if you choose to accept it. There are no upfront fees charged for our services.

Q: How frequent will there be conference calls during the sales process?

This depends on the complexity of the business and the industry.  Our brokers will only schedule conference calls with qualified buyers.

Q: What type of seller financing is offered?

Most sellers will require a seller financing of 10 to 20% of the transaction price. We strive to obtain as much cash at close as possible to the seller.

Q: Do you offer consulting services?

Yes. All of our brokers have all ran and sold online businesses and are available to assist you.  If you are interested in finding out more about our consulting services, please contact us here.

Q: Can I get a small business (SBA) loan?

It depends on the financial history of the business as well as the financial strength of the buyer. Generally if the business has consistent, ideally growing sales and profitability for the last three years and the buyer has a decent FICO score then there is a strong likelihood SBA financing can be obtained. It does however depend on the specific SBA Preferred Lender used by the buyer.

Q: Do you accept all listings?

No, we do not accept all listings.  Some brokers will take all listings but strategically Acquisitions Direct will only take quality listings. We do however take distressed listings from time to time where that distressed business appears to have potential to be turned around by the right buyer. Our firm is noted for offering quality businesses which is substantiated by our high close rate.

 

Q: How is the price determined if I want to sell my online business?

The price determined for what to list your business for is calculated during the business valuation process.  There are multiple factors that go into driving the valuation with the major ones being revenue & profit history, current year financials, specific industry focus, anticipated market demand for that business, and current business infrastructure in place including weekly effort required for new owner to effectively manage this business. Click here to get a free valuation.

Q: How long does it take to sell an ecommerce business?

The average business sells within 4-5 months.  This will vary by industry and current state of the business (profitability and growth trends)