Timing is Everything. When deciding to sell your amazon-based business, whether for a change in lifestyle, a change in your profession, or you don’t have the resources to scale. You want to make sure when selling, that the timing is perfect.
Timing your sell correctly will help you maximize your businesses value and maximize the amount of money you will get in return for it.
So when is it a good time to sell? Most believe the best time to sell is when the market is up and doing well, but the true reality is the best time to sell is when your business is doing well, the financials of your business are trending upwards, sales are booming, your team is strong and demand for your business is high.
There is well over 2 billion dollars available to people selling their amazon businesses, so you want to get as much of that as you can. You want to not just get 2 to 2 ½ times your net back, you want to get 4 times your net or more. There are plenty of companies that are looking to buy amazon businesses with tons of money, such as Thrasio, seller x, razor group, and more.
Thrasio targets brands with $1 to $10 million in annual sales with well-reviewed products. Brands typically see a 30% jump in sales just two months after being acquired, according to Thrasio. To date, the company has acquired over 100 brands with 15,000 products, with new products being added daily. Seller x offers 4x take home profit of your business, they see 88% increase in revenue growth Year over year, and close deals in no time, within a 30-day period. Razor Group has over 400million dollars and is looking to buy profitable amazon businesses.
You have options on buyers but how do you pick the correct buyer?
You want to consider and make the correct choice on who is buying and that is depending on what you want for your business or from your business. If you simply want the biggest paycheck, you’ll need to shop for the best buyout option, which may include all cash, cash plus a percentage of annual earnings or cash plus equity. If you’re interested in maintaining a role in your brand, you’ll need to find an acquirer that is interested in retaining you or your employees as part of the acquisition.
Lastly, if your business is personally meaningful to you, you may also consider which acquirers will uphold the legacy you built.
Some may dismantle your business for parts, while others may change your branding if they think there’s profit in doing so. Some acquirers are investors first, Amazon experts second.
All of these are possible and in reach for you when the demand for your business is skyrocketing and you sell at the right time. To create this demand, you must sell a business when it is growing and looks to have plenty of potential to continue growing and not on a decline.