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Articles on Selling A Business

Tax Implications of Selling an Online Business

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It shouldn’t shock you to learn that when you sell a business, you will have to pay taxes on the sale. However, the amount of taxes you will pay can vary depending upon the expertise and advice of a knowledgeable accountant and business broker.…

Common Mistakes Sellers Make When Selling Their Online Businesses

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Each year, hundreds of online businesses that are listed on the market are not sold. Sometimes external conditions such as the economy, an industry or access to capital are factors but most of the time the reason is that the seller is simply…

Deal Optimism in 2019

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Just about a month into the new year, small-to-middle market M&A confidence appears to be gaining. A few recent surveys questioned M&A participants and business owners about their expectations in 2019. Most responded that they believed…

LOIs, Earnest Deposits, and Exclusivity

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Alright, so you received a Letter of Intent (LOI) with a reasonable offer. Sounds good, right? Yes, but in addition to the purchase price and deal structure, there are other essential aspects of the agreement that must be discussed and negotiated.…

The Importance of High-Quality Marketing Materials

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When it is finally time to sell your online business, your internet business broker is crucial in the preparation of the key materials necessary to effectively market your company. Here at W3 Business Advisors, there are two critical documents…

Search Funds - A new Breed of Buyers

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If you have never before heard of a “search fund”, don’t worry…. you’re certainly not alone. While its inception dates back to 1984, only in recent years has it surged in popularity. In its simplest form, a search fund is an investment…

Why Reducing Business Dependence is Crucial Before a Sale

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One of many critical variables that buyers analyze prior to making an offer on a business is whether the business is fully dependent on the seller. If the answer is yes, then it is a much more challenging sale than otherwise, as the buyer must…

Longer track records warrant higher multiples

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In some of the older posts, we discuss the different factors that influence the multiple which an online business will sell for. One of the most important factors is the longevity of the website business. Ecommerce and other internet businesses…

Why you should redesign your website prior to selling

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One of the most important yet often overlooked things to do prior to selling an internet business is renovating your website.  Website designs are not timeless and should be updated every 2-3 years.  Company logos should also be redesigned…

Why some online businesses sell at higher multiples than others

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In general, most online businesses usually sell within the range of 2.0 to 3.0 times the Seller’s Discretionary Earnings (SDE).  However, there are outliers as there are certain sections of the market (mostly businesses that sell and provide…

Selling an Amazon-based Internet Business

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Amazon is playing an increasingly important role for many internet businesses as it has become the first-stop shopping site for many ecommerce consumers. While operating an Amazon business can be a very easy process, selling one is certainly…

Selling Your Website When Sales Are Declining

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While it is ideal to sell your website when sales are increasing, circumstances may dictate otherwise and you may be forced to sell when the financial performance is deteriorating. Many prospective clients approach us to sell a website when…

Preparing for the Sale of Your Website

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After making the tough decision to sell your website, it is optimal to prepare the business for the sale, so you can maximize the selling price. While we always advise our clients to have their financials ready for due diligence and update the…

Why deals can sometimes fall apart

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So, you are selling a website, you received an offer and have entered the due diligence stage. You're home free now, right? Wrong! We have seen many deals fall apart due to the carelessness and laziness of a seller. One of the main reasons…

Knowing Just When to Sell Your Internet Business

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While it is easy to state that it is very important to sell your website at the right time, the challenge is determining the right time. We always tell our sell-side clients and prospective clients that the best time to sell their website is…

Timeframe from Listing to Closing

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As an internet business broker, one of the most frequent questions that I'm asked by sellers and prospective sellers is, "How long will it take for my website to be sold?" Of course the timeframe varies on a case to case basis, but it usually…

Virtual closing vs. in-person closing

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Unlike when closing the sale of a traditional business, when you sell your internet business you have the advantage of utilizing a virtual closing. If you have sold a brick and mortar business before then you probably conducted the closing at…

Tax effects on an internet business sale

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With the looming expiration of the Bush tax cuts, it is quite possible that the capital gains rate will increase from 15% to 20% next year. Obama has made it clear that he would like the rate to be 23.8% and if he gets reelected as many believe…

The Importance of Accurate Financials

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When selling your internet business it is very important to provide your broker with accurate financials as inaccurate financials is the number one reason that website deals fall apart. Any buyer will perform extensive due diligence and will…

The Closing of an Internet Business Transaction

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Unlike a traditional brick and mortar business the closing stage of an internet business transaction is surprisingly very simple. Towards the end of the due diligence process, your internet business broker will begin to prepare an asset purchase…

Selling Your Internet Business - Stock vs. Asset Sale

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When selling your internet business there are two types of transactions that can be structured; a stock sale or an asset sale. As a rule of thumb, nearly all sales of internet business sales are executed as asset sales. During an asset sale,…

Exploring Exit Strategies and being Discreet with Employees

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Many buyers who do not have experience with domain appraisals often do not understand the numerous variables that are considered when determining an online company's value. While most buyers primarily base their decision on the company's…

Selling a website - Timing is Everything

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With most things in life, timing can be everything, especially when selling website business. Working with the right internet brokers is essential to achieving your goals for the transaction and more importantly, staying in line with the expected…

Website Acquisitions and Non-Compete Agreements

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As many website business owners find themselves asking the same question, "How can I sell my business online?" the answer can almost always be found by seeking the advice of a website business broker. Making the decision to sell internet…

Buyer and Seller Relationships Before & After the Sale

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What many business owners don't initially realize when they sell an internet business, is that the owner will typically have to include around 30 days of training for the buyer to get acclimated with running the business on their own. Some…

Selling Websites as a Package or Individually

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Working with a web site broker is the ideal move when trying to sell web business, or multiple web businesses at the same time. If you own numerous web businesses, the question is should you bundle them together as a package or sell site individually. The…

5 Most Common Mistakes to Avoid during the Sale Process

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When business owners want to sell website company, many seek out the advice of a website brokerage over a traditional business brokerage that primarily deals in brick and mortar businesses. Sure, deciding that you want to sell website may be…