A Little Revenue Growth And Cost Reduction Can Dramatically Increase Valuation Before You Sell

There Is A Defined Path To Exit, we wrote a book about it. Check out Aggregator Navigator.

Our Objective Is To Maximize Proceeds From The Sale Of Your Ecommerce Business

  • Typically, we recommend preparing your Exit Path 2-3 years before exit.
  • This gives adequate time to significantly increase valuation and sale price.
  • It takes time to clean up your books and make the business optimally appealing to buyers.
Ecommerce Business

When Is The Right Time To Sell An eCommerce Business?

That may sound simplistic, but it’s true; you don’t want to sell when it’s a bad time to sell.

  • The economy is down and the bottom is falling out of the market.
  • It’s a buyer’s market, and your business will be competing with too many other similar businesses.
  • You’ll only get a rock bottom price because you’re desperate to sell, or your company is in bad shape to sell.
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A Typical Exit Path From An Amazon or eCommerce Business…

  • We believe there's a buyer for every GOOD business. It really comes down to how you find them and close them.
  • Branded Seller can coach you through the process, and save you that 5-15% commission charged by brokers.
  • Every company is different, and every client’s exit needs are different.
  • The Exit Path we provide is customized to your situation.
  • In general, the following describes Branded Seller’s Exit Path.
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Phase 1: Discovery

STEP ONE: Your Exit Path Begins With An Exit Discovery Consultation

We start with an in-depth consultation about your exit plan ideas and intended exit date. We discuss concerns and issues that need to be resolved prior to exit.

We also do a bit of high-level consultation about potential strategies and tactics.

We Can Coach You Through An Exit

My goal is not to sell you on anything; it’s to help you discover your best exit strategy. You don’t pay us when we coach you to maximize your exit value.

Why would I do that?

We’ve been through the business-sale challenge myself—wading through all the options. It’s tough. You don’t want to do it alone.

We Have Vetted Buyers Who Can Complete A Purchase

We maintain a solid list of vetted buyers who are capable of completing a purchase.

We get a commission from our buyers when you sell, so we don’t have to charge you for the Exit Coaching.

When we increase your profit and value, we increase our exit commission from the buyer.

That’s how it works.

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Intended Timing Of Your Exit Determines Next Step

  • There are a lot of factors that determine ideal timing of exit.
  • And here’s the thing: markets, potential buyers, and the economy change quickly.
  • You could have an identified ideal time-to-sell, and circumstances can change on a dime.

The Most Important Thing—The WHY Of Your Exit

In our conversation, we lead with your WHY—ready to retire, can’t work anymore, ready for something else, etc.

Every seller has a unique WHY, and that determines the best approach to the exit—for that seller.

The challenge to answering "WHY ARE YOU SELLING" without specifics or detail, it quickly can become a question mark for any buyer as to what might be bad or wrong with your business. Figure this out, selling your business depends on it.

Short Term:
Ready-To-Sell Path (12-18 Months)

If you want to sell now, it’s a simple process.

  • We strategize quick wins to increase your profit.
  • You decide which quick wins make sense.
  • We do those quick wins for you.
  • We guide you to package your business as attractively as possible.
  • Then we start to make introductions for you to vetted buyers on our list.
  • We coach you through the sale, and help you get the best price.
  • We get a commission from the buyer once the sale is completed.

Grow-To-Sell Path (18 Months To 5 Years)

we design a Profit Plan to increase revenue and value.

  • Create a Strategic Plan To Exit.
  • Analyze opportunities and identify which to pursue.
  • Develop Profit Plan and target date to exit.
  • Execute growth tactics.
  • Determine optimum exit readiness and timing.
  • Prepare financial and marketing package.
  • Coach you through assessing buyers and the sales process.
  • Complete the deal and exit.
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How We Charge You For These Services

Short Term:
Ready-To-Sell Path (12-18 Months)

These are the costs you can expect to pay for our  on the short-term path.

  • Exit Coaching = Free.
  • Operator costs for Quick Wins.
  • Buyers Pay Commission—Not You.

Grow-To-Sell Path (18 Months To 5 Years)

These are the costs you can expect to pay for our services on the longer-term path.

  • Exit Coaching = Free
  • Monthly Operator Retainer to cover overhead while we grow your business ($1K-50K a month depending on requirements).
  • Revenue-share (1-5%), based on revenue increased from starting baseline.
  • A Success Fee (20%) on exit, based on the increased valuation of your business over baseline. If we don’t increase your value, we get no fee. We only win when you win
  • Buyers Pay Commission—Not You.
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Phase 2: Agreement

Sign A Non-Disclosure Agreement

Before we get into the details of negotiating our contract, we sign a mutual Non-Disclosure Agreement (NDA).

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Step 2

Before we get into the details of negotiating our contract, we sign a mutual Non-Disclosure Agreement (NDA).

Lets Talk

Step 3

Before we get into the details of negotiating our contract, we sign a mutual Non-Disclosure Agreement (NDA).

Lets Talk

Phase 3: Analysis

STEP ONE: Quantify The Market

Quantifying the market tells us how much extra juice comes from the squeeze. We’re looking for specific tactics we can execute to increase your business value.

We focus on the biggest opportunities to increase your market share

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Compare your products against competitors’ products.

  • PRODUCT: How does the quality of your product compare? How are the reviews, what is the return rate, is it trending up, down? How are you converting compared to competitors?
  • PRICE: How does ranking compare by sku, asin and keyword to your competitors?
  • PROMOTION: How are you using coupons, deals and other marketing tactics to create value perception?
  • PLACEMENT: Where is your product available? Are you selling it where your customers are looking for products like yours?

Analyze the size of the market in relation to the brand share.

  • What is the brand revenue relative to the percentage of market share that the brand has?
  • Is there a product/market fit that needs to be revisited? Selling a bundle or bulk pack, or increase the oz, quantity, volume etc to create better consumer economics based on what competitors are doing.

STEP TWO: Perform Opportunity Analysis

The core business consists of your best products on your best platform. We focus on your largest products and largest channel to start.
We’re also looking for other opportunities that dovetail with the core business.

The Deciding Factor Is Always

Is The Opportunity Worth The Payoff After Doing The Work?

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Phase 4: Strategic Plan To Exit

STEP ONE: Develop Profit Plan And Target Exit Date

After analyzing the business, we present you with a Profit Plan.

We discuss the details and collaborate to fine tune the plan. We determine a target exit date that we’re shooting for. Target exit date determines the timeline for sequencing all tactics

STEP TWO: Execute Growth Tactics

This is the really fun part for us—pulling all the growth levers and enjoying seeing your revenue, profit, and market share grow.

We use a lot of different tactics including any on this long list of possibilities.

  • Optimize the listings to increase sales.
  • Analyze and optimize conversion rates.
  • Develop and manage a paid search strategy that increases sales.
  • Maintain focus on keyword ranking to keep your listings at the top of searches.
  • Explore and (as appropriate) exploit new channels and/or markets.
  • Develop and launch new products.
  • Relaunch products that are not performing adequately.
  • Manage product lifecycle for maximum profitability.
  • Determine and produce product bundling and kitting.
  • Reduce product costs by improving sourcing.
  • Improve in-stock rates, and provide timely sell-through of dead stock.
  • Monitor, audit, and repair profit leaks.
  • Produce Summary Statement of activities, and metrics for each quarter.
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Phase 5: Finalize Target Exit Date

STEP ONE: Determine Optimum Exit Readiness And Timing

Note that readiness and timing are not fixed targets.They require a constant calculation and reevaluation.

There is both an art and a science to assessing the current state of the market vs. your current readiness. We monitor your business valuation over time.As conditions change, we reconsider both readiness and timing and advise you.

Readiness Is Determined By Both Internal And External Factors

When it comes to selling your ecommerce business, readiness and timing are fluid. There are internal and external factors to consider.

It could be as simple as the fact that you’ve achieved your best month ever, and it feels like time to sell and sit back and enjoy life. Or you might think about keeping the business and letting Branded Seller continue to grow it for you.

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Internal Factors To Consider

  • The business is well organized so that it is attractive to buyers.
  • The books are clean and clear, and the numbers make the business a good buy.
  • Internal timing is driven by value. These are the questions that are relevant to internal timing.
  • Even though I’m ready to sell, should I sell now or wait to make more money?
  • Am I selling because I have to vs. because I want to?
  • Am I satisfied with the valuation at this point, or should I hold on and grow the business a while longer?

External Factors To Consider

  • External timing is driven by the health of the outside buyer market, market conditions, and economic factors.
  • It’s also driven by the market appetite for acquisitions, and the valuation numbers driven by that appetite.
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Phase 6: Sell

STEP ONE: Prepare A Financial And Marketing Package

Once we’ve mutually determined that readiness and timing are optimal, it’s time to sell.

  • We organize a package (Prospectus or CIM or OM) to approach potential buyers.
  • The package essentially tells the story of the business, and why a buyer might consider purchasing it.

STEP TWO: Validate Buyer Interest

One critical step is to validate that buyer interest is in line with your timing.

The market changes quickly and economic, political, geopolitical, and supply chain issues can all affect buyer interest.

STEP THREE: Offer The Business For Sale To The Market

We cast a wide net for carefully vetted, capable buyers who are in the market to buy businesses like yours.

  • This is where it turns into exciting fun getting to share your business growth story with potential buyers.
  • It’s even more fun to show potential buyers that your business will be more expensive in a month, and even more expensive in two months.
  • We can provably show that the value of your business is growing as we claim.
  • Revenue growing month-over-month, growth trajectory track record, and future planned growth demonstrate that the value is increasing predictably.
  • Obviously, that makes your business a hot commodity!

STEP FOUR: Validate Buyer Capability

Once a buyer expresses interest, we validate their capability to purchase. We look at a lot of factors, including:

  • Capability—Is the potential buyer capable of buying and operating the business you are selling?
  • Credibility—Do they have credible ecommerce experience and an investment track record that shows ethical behavior?
  • Cash—Do they have the cash available to successfully complete the purchase?

STEP FIVE: Buyer Reviews The Business

Once we’ve determined that the buyer is capable, they get access to review all the company information

.We answer all questions promptly and respond to any requests as needed. The buyer makes an offer, and we finalize negotiations.

The Deciding Factor Is Always

Is The Opportunity Worth The Payoff After Doing The Work?

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STEP SIX: Conclude The Sale!

We conclude the sale and all celebrate together!

It’s a fantastic and fun journey to grow a business to sell for increased value. We’re all congratulating ourselves on a job well done.

Now, off to the transition...

Where To Next?

Now you have an overview of how Branded Seller works to deliver results to clients. To learn the details of who we work with, click Who.