Selling a 7 figure ecommerce website

[donton]

Hi guys,

I am currently assessing my options, including the possibility of selling my 7 figure, UK-based ecommerce business. I have an M&A guy who’s helping me along and we’ve had one offer, but I want to make sure I’m not missing a trick somehow.

The business sells physical products, it’s in the fashion/accessories niche. I’ve never sold anything similar in scope to this - I’ve looked at Empire Flippers but they’re asking 15% or so in commission, which I think is quite a lot. The only business I’ve ever sold was a fairly small content writing site a few years back.

If anyone is able to recommend a decent place to advertise or has any pointers, I’d definitely appreciate a nod in the right direction.

Thanks in advance for any replies.

 

[martin-s]

7-figure income or profit?

 

[stevelook2]

I think you would be best to ask on UK Business Forums.

They will advise you to use a solicitor

But the site is here https://www.ukbusinessforums.co.uk/

 

[donton]

Thanks for the replies, will check out the UK Business Forums shortly.

To clarify that's 7 fig turnover, not profit.

 

[pugyrob]

Hi. Sold a few ecommerce businesses before. One near this level. Empireflippers will likely sell it, though agreed 15% is a lot.

Sold an ecommerce business there for 3 years rev. They tend to go on 27 to 40 months net profit and 90% or so sell. I don't like that your business has to make 50% of its normal income a month after sale or they can get out the deal!!

Websiteclosers I might recommend for this one. They are more oldschool ecommerce and although they don't advertise as well as empireflippers, their database is huge and I sold through them once. Also had a lot of offers from vc companies there.

Then there is Latonas. Got a sale there once which was a fluke in the end I think. 2 bidders bid the same so they put it to ditch auction with them both and one went very high .

Latonas and empireflippers were more affiliate ecommerce websites and websiteclosers was a physical fba business. I would look at websiteclosers in this case.

Much will depend on any moats you have to entry in your niche. Time of revenue and trend of revenue. Ease to run and scale it. Then tour accounting will need to be in order of course.

Pm me for any more info. 15% is a lot but actually worth it imo for the extra you likely get. It might be possible to negotiate that fee.

 

[Adam H]

Commission in general, whether it be 15% of or not can be vastly outweighed by the fact these service providers have the reach that you may not be able to get via other means, if the site warrents it you could get a better sale price thus 15% then isn't that bad.

Good luck with the sale.

 

[donton]

Thanks for the replies, guys!

I'd never heard of websiteclosers, so going to give them a shout now. Will let you know how I get on

 

[khalid]

I’ve personally sold every single profitable website I’ve built and there’s been a lot over the years.

In the good old days you could list it on various forums and get 2-3 years income.

Then everyone began to watch listings, copy profitable ones and flip them.

Then there were various “crashes” like Panda and Penguin updates to name a few and websites, especially Adsense ones, began selling for 6-12 months income.

Over the past few years I’ve basically sold to the same people who have amassed a network of profitable websites. There’s a mutual trust and I’m always available to help thereafter so I generally don’t publish publicly what I’m selling.

I would recommend you make a document with pictures that prove income, profitability etc without giving anything away. This will help weed out the tyre kickers if you are sharing it online.

From there you can begin building relationships with potential buyers and do some digging on them before revealing all. Anyone with the cash to buy will have credible information you can check.