13 Aug Exit on a High Note: How To Find The Perfect Time To Sell Your E-Commerce business
It’s crucial to find the perfect time to sell your e-commerce business so you can exit on a high note. It can mean the difference between settling for less and walking away from an M&A transaction satisfied that you have earned the maximum value. But how do you know when the time is right?
Creating an Exit Strategy
Setting predetermined milestones can help you choose exactly when you will initiate an exit. These could be based on revenue, maturity of the business, or even your ideal retirement age.
Selling an online, digitally native, or Amazon FBA business takes time. We recommend starting the process at least 12-24 months in advance of your anticipated exit date. What’s most important is that you begin thinking about an exit now and build with a future sale in mind so that when the time is right, you’re prepared.
Finding the perfect time to sell
1990 – Francis Ford Coppola released his third and final film in the Godfather trilogy with Al Pacino reprising his role as Don Michael Corleone.. The film spawned one of most memorable and often imitated lines of the series. Standing in his kitchen, Michael exclaims, “Just when I thought I was out, they pull me back in.”
It can be difficult to let go; there will always be something that “pulls you back in” and while it (probably) will not literally kill you, it might cause you to miss the ideal moment to sell your company and pursue what comes next.. Exiting your company signifies closing an important chapter in your life. Change is positive and whether you want to sell in order to start a new venture, enjoy your retirement, or simply focus on living your life for a while, having an exit plan is a critical part of making that change.
You may have already considered the first steps. All the financial records are in order, the business is performing well thanks to your tireless efforts, and your endgame is in sight. Nothing is forcing you to leave, but it seems as good a time as any to cash out. Just the fact that you’re thinking about it, to you, says that it’s probably a good idea to put the rest of your plan in motion.
You know you have to figure out how much your business is worth, where to find a buyer, and which intermediary you can trust to help guide you through the transaction, but you don’t know exactly when you should get started. Fortunately for you, the answer lies in the wise words of yet another 90s legend.
exit On A High Note
1998 – Midway through Seinfeld’s ninth and final season, George Costanza, played brilliantly by Jason Alexander, has fumbled his way into yet another awkward predicament at work. During a staff meeting, George makes a witty observation and is rewarded with laughter from his boss and coworkers.
High off his own ego, George chooses not to let the moment pass; instead he doubles down, carrying on for far too long and inadvertently causing the joke to fall flat. Later in the episode, Jerry reveals that George could have avoided certain disaster had he only embraced the philosophy behind Las Vegas showmanship – exit on a high note.
Good business, like comedy, requires impeccable timing. The truth is that the absolute best time to launch your exit plan is while things are going well, not after.
Prospective acquirers look for sustainable, scalable growth in companies they wish to purchase. Growth indicates that the foundation is solid and if they invest their time and money in the business, it should continue to grow exponentially.
Building Towards your ideal exit
With that in mind, you should always do business with a potential exit in mind. Streamline processes, improve efficiency, and keep accurate records as you go so that when the time comes, you have already laid the groundwork for a smooth transfer of ownership. When you feel that you are ready, the rest will be an afterthought.
Do not wait until a life event forces you to sell the business you built up from nothing. Start thinking about your exit plan today.
Once you are confident that right now is the right time to sell, find an intermediary you can trust to help guide you through the process. While business brokers can help you create a listing online, only an experienced Mergers and Acquisitions advisor will earn you the maximum value for your business.
You deserve to work with someone who will take the time to understand every aspect of your company and work tirelessly to find the perfect buyer. Most importantly, you’ve worked hard to make your business a success; let us work hard to help you exit on a high note!
About Global Wired Advisors
Global Wired Advisors is here to help you sell your Digitally Native or FBA business. We are Mergers and Acquisitions specialists with over 50 years of combined experience in selling online companies. Try our Free Value Estimation Tool to see what your business is worth.
We are committed to providing world-class customer service while earning you the highest value for your business. Our team is standing by – click here to speak with one of our Advisors today!!!