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GOLD Selling my Ecommerce Business

Discussion in 'Progress/Execution Threads' started by amp0193, May 21, 2017.

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  1. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I've never tried a wine I liked.

    Just not into it.

    Maybe you can enlighten me one day!
     
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  2. JAJT
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    JAJT Ha Ha! Business Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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  3. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Call went well today.

    It was mostly just questions like "why do you do this this way?", "Why are you using this 3pl?", "Why are you using this packaging supplier?"

    In the discussion, we actually figured out a way to cut $1500/mo in postage expenses right off the bat, and it's something that was right under my nose, and pretty easy to implement. It was having the 3PL takeover all of the website shipments, where I've been previously using Amazon 3rd-party fulfillment... just because that's what I've always used.

    The only question that was kind of a "gotcha" was "why don't you have insurance?".

    Yeah, I didn't really have a good answer for that.

    I guess because I'm a idiot?

    The truth is I just never took the time to figure it out, or there was always something more urgent to be working on. It just wasn't a priority for me.


    However, I know that's not necessarily the most believable answer to that question. They might be thinking "maybe this guy couldn't get any insurance because of the nature of the products".


    But then, after the call, they emailed me with more details for the post-sale training... so maybe they are just going to do a little extra research into getting the insurance figured out before they commit, and it wasn't a deal breaker.


    They are meeting with me in person in 6 days. It's getting real now.
     
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  4. Patrick R
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    Second best Scotch of my life. Let's discuss in the other thread though haha

    Sent from my SM-G930V using Tapatalk
     
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  5. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Well, I thought we were all good, but then they reviewed the August books and started freaking out.

    What triggered the concerns was seeing a decrease in Amazon sales for the month. This was caused by my lowest ppc spend ever (the reducing of the ppc spend has been an ongoing strategy to increase the bottom line). However, the profit for the month was the 2nd best ever (after last month).

    They are placing too much importance on sales and product BSRs. Both of which don't really matter nearly as much as search rank and profit, and those are doing great.

    I had very good answers to all of their concerns, so hopefully that satisfies them.

    The funny thing is, if my BSRs were great, and my Amazon sales were super high, they would be getting after me for having such high ppc costs.


    I think they are tense as due diligence is wrapping up and decision time is coming soon.


    It's definitely tense on my side. I had to get out of the house for the entire day. I took my daughter to go watch planes at DFW Airport.


    Time is passing super slowly.
     
  6. hughjasle
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    This is my favorite part of all this. Congrats man. Even better that you are already making waves in the next business. Keep killing it.
     
  7. Philip Marlowe
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    This is a great thread. I've gotten way ahead of myself and just read 'Built to Sell', which I'd recommend to anyone on this forum (although you've now experienced it all first hand).

    Best of luck on this.

    EDIT - Second on McCallan 25. Excellent single-malt. If you like peaty/smokey though, give Laphroaig 10 a try.
     
    Last edited: Sep 9, 2017
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  8. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    You're not getting ahead of yourself.

    The #1 lesson I've taken away from all of this is always have the end in mind.

    There are decisions I make this month in my new business, that will in one way or another affect how the sale of this business goes 5 years from now. Everything needs to be built with the exit in mind.

    I just ordered Built to Sell on Amazon yesterday, I think because of your recommendation in another thread.
     
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  9. amp0193
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    The buyers flew in to meet with me today. We did a 2-hour session at a coffee shop, where after a bit of small talk and pleasantries, they went through question after question they had for me.

    Most of it was process stuff on the mechanics of running the business. Most of it we had gone over before, but we went more in depth today, and they got to look over my shoulder as I went through some things on Amazon.

    There were no surprise questions out of left field. I had a good answer for just about everything.

    Then we took a break for lunch for some unbelievable Texas Bar-B-Que. Maybe the best I've had in my whole life.

    With full tummies and the out-of-towners impressed with the meal, we went back at it.

    It was another 2 hours of questioning me about every little thing... mainly on ways I would grow the business if I had unlimited resources and was going to continue to run the company.


    After which... they seemed fairly satisfied. We ended on a good note, with a laundry list of things I need to compile for them over the next couple of days, and a statement of:

    "we'll send over the signed contract tomorrow"


    !!!!!

    Here's to hoping they do.


    This is just my gut feeling... but I say the odds are 2 out of 3 that the signed contract comes with a slightly lower modification to the offer. We'll see. It's just a thought, as I think I may have come across as more eager to sell today than I had intended. I'm not sure if they picked up on that.
     
    Last edited: Sep 13, 2017
  10. Aaron T
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    I am super excited for you! I hope you get that contract and there are no surprises! This has been a great thread to read so far.

    Also the Japanese Whiskeys by far are my favorites now. But I enjoy a lot of whiskey and everything mentioned so far has been a good choice.
     
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  11. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I'm working on the compiling the laundry list of docs, and keep hitting refresh on my email like it's going to make an email appear.

    I didn't think I would be this anxious.


    My broker was right: Buyers always think the process is going too fast, and always want more time to learn more about the business. Sellers get progressively anxious and think the due diligence process is taking too long!
     
  12. Philip Marlowe
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    This is excellent news. Fingers crossed.

    I know you said the sale will ideally float your next business and possibly pay-off a few things. Will your 9-5 change at all, or is that the purpose of the follow-on venture?
     
  13. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I haven't had a 9-5 in 16 months.
     
  14. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Just a placeholder email from them today about the stuff I sent over.

    "we'll review and let you know if we have more questions".


    I could rip my hair out.


    Close date still isn't technically until 9/22. So I figure one way or the other, this will be wrapped up in a week.
     
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    Frustrating.

    I can't imagine spending all this time and energy on the due diligence - this isn't the type of transaction you make if you're new to the industry, and an experienced person shouldn't have so many step-by-step process questions.
     
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    Fingers crossed. Best of luck!
     
  17. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    My overall impression, is that they are just trying to figure out if it's a business that suits them, and if they've got a plan to take it somewhere.

    And actually, I think a lot of good number of buyers in this price range are probably new to the industry and buying a business for the first time. They are asking step-by-step questions to really understand how everything works. But when I'm being asked some of the same questions 3 weeks in a row... it starts to wear me down!

    When you get into the multi-millions, then you're talking professional business buyers.
     
  18. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Boom, in my inbox this morning.

    [​IMG]


    My lawyer and I are reviewing the document now, and will make any changes if necessary, then send it back to the buyers and their lawyer for review. This process will repeat until both sides are happy... then we'll sign on the dotted line, money gets transferred into escrow, and I transfer over the assets of the business.

    The end is in sight.

    And thankfully, there was no change in their offer price from what we settled on a month ago.

    I think I'll thoroughly enjoy my Woodford Reserve this weekend:

    [​IMG]
     
    Last edited: Sep 15, 2017
  19. TheSmokey1
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    Excellent, I'm really happy for you. Thanks for taking the time to share the details with us.
     
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  20. JAJT
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    JAJT Ha Ha! Business Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    This will likely be the go-to reference thread for people looking to sell their business for years man. Great job with all this.

    Can't wait to see you close this off :)
     
  21. James Fend
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    I'm anxiously holding back my official Congrats until the money is in your account, but so close! I have thoroughly enjoying watching your journey with this business from the very beginning to now... !
     
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  22. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Haha, yeah, you never know. Anything could happen. It's not a done deal until I have the money.

    Pouring over the document today, it was just nitpicky stuff... nothing major was changed from the broker's original document. So, other than the buyer's getting cold feet, and just refusing to sign the final document... we're in the clear.

    I'll let you guys know when the deal is done!
     
  23. amp0193
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    amp0193 Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    When everything is done and the dust has settled, I'll do a big write-up with lessons learned, and the takeaways that anyone thinking of selling their business down the road should be able to apply, and start working on. There's a lot of things I could have done to make this process easier.

    Between that write-up and @JasonR 's recent thread on lessons learned from selling his business, I think there will be a good road map for those looking to sell a business.
     
  24. Greg Rutkowski
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    That is good to hear!

    I was recently in a deal that went south at this phase (I've heard many deals fall through at the 11th hour).

    We spent six months hashing out the details. When it came down to putting everything in the contract, the deal completely fell apart after the lawyers got a hold of it. It was a bloodbath going back and forth. Many dollars were spent communicating through the lawyers. Obviously they were both trying to do their job by putting their clients interest first, but it ruined the deal. Never again will I conduct business that way.

    One learning lesson for me is to be up front as much as possible and do all important communication yourself. Don't hide behind your lawyer.
     
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    Very excited for you. Holding back on the full congratulations, but a definite grats on getting it this far!

    I can't wait to see the full writeup. There is a lot for us to learn from here.