03 Dec Selling Your eCommerce Business
Whenever a business owner is considering an exit strategy, whether it is an eCommerce business looking for a valuation or some other type of business looking to fully divest, it is important to consider two key points: what history adds value to the business and what future endeavors or business opportunities will add value.
The beauty of the technology industry and people who have built a business in that space is that investors have gained experience and expertise that allows them to apply experience that will grow a business in a different way than what your expertise would have ever allowed. For example, Deal Capital currently represents a client that is selling an online retail business of niche computer peripherals. While the current owner has done an outstanding job at building the business from the ground up to nearly $6 million in revenues, one of the private equity groups investigating the company has a CEO with experience in e-commerce that could add a tremendous amount of value to the existing business model. One point that the buyer needs to make, however, is that being to disruptive to a website or existing online retailer could crush the profitability of the website.
This is actually a trait that is beneficial to many businesses. While the current owner may or may not have done an outstanding job at building a business, sometimes letting go, backing away, and letting a new pair of eye look at the opportunities allows the business to expand in ways that would that it would not have otherwise been able to pursue.
One beneficial factor of a online retailor or wholesales, or any online business for that fact, is that it can be acquired by nearly any investor looking to acquire a business because it can be relocated, sometimes over a weekend. The Deal Capital client use to be located in one state, then when the owners felt they were ready for a move, they packed everything up and moved the entire enterprise over a weekend and continued business the following Monday—never missing a single opportunity. This key factor alone opens doors for buyers and sellers alike.