buying-and-selling-websites-6-638

 

Fast & Easy Founder & CEO, QuietLight Mark Daoust, talks about Tips To Make Buying & Selling A Website Simple

  • www.quietlightbrokerage.com were founded in 2007
  • 600+ websites & online businesses sold vv $70M+ in total transactions
  • $20M on track sales in 2015
  • Buyers & Sellers Follow a Predictable Process

Buyers

  • Explore the Marketplace Negotiate an Offer …there’s more, but we won’t explore due diligence or closing.
  • Buyers should start small, then develop an acquisition strategy, and sellers should focus on preparing the right documentation.
  • Go into your first purchase knowing you could lose your entire investment Online businesses lose value faster than offline businesses.
  • Starting big can be overwhelming & leave you miserable.
  • Identify natural points of leverage.
  • Know what you are good at.
  • Pool Resources As you gain experience, buy bigger with an acquisition strategy.
  • First time buyers should buy small.

Sellers

  • Get a starting valuation. You’ll discover if you should wait or if you are ready to go to market today.
  • Timing your sale has significant impact on value.
  • Your financials should always be the first place you focus. Get these right..
  • Prepare documentation
  • Financials are your first focus, make sure they are right.
  • Return on Investment Buyers have one reason to buy your business: for a return on investment. Learn to speak their language.
  • Due diligence deals fall apart most frequently during due diligence. Get your financials right to make this a breeze.
  • Make sure your accounting methodology is right for the best valuation. Accrual/cash basis accounting can turn out different valuations, recording certain expenses wrong can lower your valuation (example: website rebuild)
  • Collect and organize verification documents like Bank statements, Merchant statements, Tax returns
  • Don’t Ignore other Documents! Financials are the most important documents to have right, but don’t ignore other documents Contracts with vendors, various reports on membership/clients (collect as much as possible)
  • Google Analytics setup & installed correctly
  • Sellers should ‘own the ugly’ and buyers should act like high value buyers.
  • Own the „Ugly“ Parts of your business tips! There is no such thing as the perfect website for sale. Don't hide the ugly parts of your business – own them. Buyers can handle weaknesses. Buyers can handle threats. Buyers can't handle surprises.
  • Buyer's will assume the worst if they are surprised by a weakness. Buyer's will Assume the worst buyers will also question your honesty and competency if they discover a significant omission. Buyers will question your honesty. Be upfront about weaknesses. Explain them. Explore them. Help a buyer to form the proper conclusion about your business's weakness.

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