Selling your online business can be a confusing and complex process that most business owners have little to no experience with. Our team of experienced brokers realizes that you are financially and emotionally invested in your business, and understand the importance of choosing a broker who truly understands the internet business market. Unlike traditional business brokers, who on average represent 1-2 internet-based companies a year, our brokers deal exclusively with internet-based companies and look at all aspects of the company including valuing less tangible assets that generally account for the majority of an online company’s value. Our brokers have the industry specific insight needed to successfully market your internet business, negotiate with qualified buyers and bring value to the process unsurpassed by the competition. Our full service brokerage has redefined the standards for the business listing process and will take you from initial desire to sell, all the way to the closing ensuring a successful transaction.
W3 Business Brokers has advised on many different types of internet business transactions including:
– Advertising based websites
– Ecommerce websites
– Hosting and ISP businesses
– Lead Generation businesses
– Listing based websites
– Membership based websites
– Social Networking & Media websites
– Web Development business
That’s what we do and here’s how we do it:
Internet Business Evaluation – What is the value of your company? Determining the fair market value for your business is crucial to attracting qualified buyers and ensuring a successful transaction. Our experienced business brokers take all relevant variables under consideration including your company’s strengths, historical financial performance, growth opportunities, and many of the intangible assets they generally account for the majority of an online company’s value.
Client Interview – A W3 Business advisor will conduct an interview with the perspective seller to determine your objectives and goals for your online business. As proper preparation is essential for the best presentation of your company, we will cover the list of things that need to be collected, including financial and general information. This information will be critical in determining a marketable asking price for your business that will attract qualified buyers.
Listing Agreement – We require that all sellers execute an exclusive listing agreement which authorizes W3 Business Advisors to use its best efforts to market your internet business and identify qualified prospective buyers for the business. This agreement allows W3 Business Advisors to provide the company prospectus to potential buyers that includes a detailed overview of the business and portrays your business in the best light. During this step, W3 Business Advisors will advise and consult on the proposed selling price, terms and conditions of the sale, and the structure of the deal.
Marketing Strategies – Using the company information from the seller, we will prepare a company prospectus which will include a variety of marketing documents that will be used for the professional sales presentation of your business. Your business will be advertised using numerous online venues, targeted media outlets and through our own database of qualified and interested buyers. We will also determine the level of confidentiality needed during this process to help protect against your competitors, customer, vendors and employees.
Screening Potential Buyers – We will field calls and emails from interested parties and conduct extensive interviews to qualify potential buyers and ascertain their interest level, ability to meet the financial requirements of the transaction and if the online business is the right match for the buyer. If approved, we will ensure a non-disclosure agreement is executed as a sign of commitment that the buyer is genuinely interested in acquiring a new business at the price and terms consistent with your business.
Presentation & Review – We will extensively research your company, competition and industry when preparing a detailed company prospectus that will be provided to prospective buyers. The prospectus will present a brief overview of the business, products and services, site traffic analysis, potential for growth opportunities and a financial performance summary. During this step, we will also answer any questions the buyer may have and possibly arrange a conference call between all involved parties.
Letter of Intent / Offer to Purchase – During the negotiations process, W3 Business Advisors will secure a Letter of Intent and/or a formal Offer to Purchase which will include the selling price, terms and conditions of the sale, and the structure of the deal. W3 Business Advisors will present the offer to the seller and answer any questions regarding the offer and will also advise on making a counter offer or accepting the proposed offer.
Due Diligence – The offer to purchase is generally contingent on the buyer’s professionals verifying the accuracy of the seller’s operational and financial performance. W3 Business Advisors, seller, buyer(s) and any additional parties will work together to identify and address any open issues in preparation for the closing date.
Purchase Agreement – W3 Business Advisors will prepare an asset purchase agreement that will be presented to the seller for review and approval, and once approved will be sent to the buyer to be signed. The asset purchase agreement will include the selling price, terms and conditions of the sale, and the structure of the deal.
Closing – As the sale of the business is finalized, the closing date will take place when the transfer of funds is complete and the business is then legally transferred to the new owner. A transition period is usually established to allow the new business owner to get familiarized with the daily operations and procedures of the business. This is an important step in the selling process and the time required will vary from business to business.