Why Retain An Online Business Broker To Sell Your Online Business

Dec.01, 2008 in Internet

The decision to engage a business broker to assist in the sale of your online business is an significant consideration. Most “Do It Yourself” (DIY) sellers think they can end up with greater profit in their bank account at the end of the deal. Most DIY sellers are not completely prepared for the amount of work and aggravation involved in the multifaceted transaction of selling an online business.

Similar to selling real estate property without a broker, selling your online business means you will need to create all the documents yourself, appraise its appropriate value, market the business, screen every prospective suitor, haggle the price, and handle all the arrangenents for closing including escrow, asset transfer, training and post closing assistance – all without any skill in any of these areas.

website for sale

Without experience and an extensive understanding of the online business environment, sales structures and accurate valuation methodology a seller can find they are inundated. This usually leads the average seller to erode the greatest probable valuation they could realize for the sale on their an online business. Most do it yourself sellers are not completely ready for the amount of work and aggravation involved in the complex transaction of selling a online business opportunity.

Statistically, the average selling price by the DIY market in real estate is 15% less than the average selling price of houses listed by realtors. The net effect is that there is about eight percent less in the sellers account after agent commissions. Also, with an online business being sold personally by the seller, both the listing and ultimate closing prices are likely to be smaller by a broker. The realized cash in the possession of the seller can be the difference of tens to hundreds of 1000’s in some cases.

Of course there are anomalies to everything, and there are some owners who are knowledgable enough to sell directly and really enjoy the experience. But for the majority of sellers the process can be daunting. The majority of business sellers have nurtured their businesses through to a level of solidity and see them as their “baby”, so selling their “toddler” after creating it and nurturing it is a big choice. Knowing who to sell it to is sometimes as essential to sellers as the price and terms.

internet businesses

Selling a website business can be an psychologically draining experience that can take six to twelve months to finish. Attempting to accomplish this deal on their own while still trying to develop the business can be very intense!

For all of these aspects, making a decision to procure an internet business broker specialist is in most cases the wisest choice an owner can make.

A website broker that specializes in selling online businesses will be able to help a seller throughout the process to insure the best exposure and anxiety free. From assessing the business fundamentals and appraising the true value of an online business; preparing a clean and clear offering memorandum; advertising the listing to qualified buyers; to separating qualified buyers from ’time wasters’; to negotiating price and terms; to securing the business.

internet businesses for sale

Supervising the transaction for the client means less emotion and allows the seller to concentrate on the operations of the business through closing. Sometimes businesses that go up for sale see a drop-off in revenue during the selling process because the seller is distracted from the day to day operations – this can be extremely damaging to the final price. This by its self may be the most important cause to retain a broker as the seller will be able to focus on developing the EBITA to insure maximum interest.

Finally, the peace of mind of knowing an agent with ample experience is securing your best interests and eliminating most of the aggravation that sometimes occurs in website business sales. That combined with the higher probability that a bigger selling price will be accomplished should be potent enough reasons to look for an accomplished professional internet business broker to assist in what could be one of the most meaningful decisions of your life.
David Fairley
President Websiteproperties.com