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Looking for an experienced Internet broker to sell my website business.

I have a highly profitable Internet business that I'd like to possibly sell depending on your valuation and certainty of selling. Based on the revenues, I'm looking for $X,XXX,XXX figures.

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Answers (8)
Henry Galasso
East Coast Stores LLC, NYC
Nassau County, NY
Premium Broker

My name is Henry Galasso, i owned and operated 4 internet companies and sold them myself, i currently own www.EastCoastStores.com or www.BusinessBrokersNY.com....i can sell your site!.....trust me i can sell almost everything if i had more secretaries........but i am starting to Niche out the Internet Brokering since i was in e-commerce for 10 years...call me at 516-779-8900....the last one i sold was PlanetAppliance.com

Dec 4, 2011
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Hello Nick, contact me at entrepreneur11183@yahoo.com to discuss sale

thanks

Dec 4, 2011
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The BAF Group LLC
MD

Nick, it does change the dynamics, somewhat. On the profit vs revenue issue, I almost asked for a clarification before I answered, because many people say things like that off the cuff. I figured that might be the case.

Two years are better than one. You can SOMETIMES get by with two years, but the more you try to cut down the time element, the more you bear the burden of potentially carrying the note, yourself. Banks are not happy about lending on the basis of businesses without tangible assets for security, first because of the entire Dot Com implosion, then the entire credit meltdown that for commercial loans, began in 2007. The time element - regardless of the amount of time we discuss - is usually marked by the number of Tax Returns that represent full, 12-month financial data in each Return.

Moreover, keep in mind that even after three years of existance, e-commerce companies are, in the majority of cases, subject to terms that do not give you the whole price, up front. They are done with either the Seller carrying a heavy portion of a note, or an "earn-out". And again, the shorter the time the Company has been in existance, the more the Buyer will demand you carry.

On the subject of who does what in your business, if I were you and looking to sell, I would immediately work on setting it up as an absentee-ownership scenario. The more time you have with people in place that can operate independently of your continuous oversight, the better off you are.

Keep in mind that in ANY business sale, no Buyer will buy on the basis of potential. Not the potential for earnings and not in the potential of them changing the business to suit their operational needs. They will pay for and will demand a true turnkey entity, particularly in your line of business. You need to impress them with the fact that you can walk away at settlement, (or extremely shortly thereafter,) and the business will run seamlessly with the same upward increase in business, and with no hiccups in operations due to your absence.

The kind of Buyers that will acquire a company like yours are tough, business-oriented people. They are not the same people that will buy a C-Store or Gas Station. They know what they want and they will only consider things that fall into their specific, strategic set of objectives. These are not people that cruise BizBuySell and think, "What do I want to do with the rest of my working life?" They already know the answers and they are either looking for e-commerce companies, or they are not. Meeting their specific requirements spells the difference between them considering your Company at all, or offering 20 cents on the dollar. Negotiations are brutal and can be lengthy. But just getting to the negotiation point is part of what I am suggesting to you, in order for you to start.

Again, I don't earn a cent by just spouting off here; but I believe you would be better served by holding off, getting to that three-year target, shoring up management concerns and then putting the Company on the market. We can do it at this point, and it costs you nothing if you don't get what you want; but by hanging in there, the rewards you would achieve would be far, far superior to anything that you would generate, today.

Nov 30, 2011
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Don, thanks for your input. The business has been actually running for about two years, but one particular domain I started in the past year the profits have been increased by over 1,000% so I'm not sure if it's right to call it 1 or 2 years in business. I should of clarified my original post as my asking price is purely based on profits and not revenues. Everything I do in the business can easily be outsourced to the same people that are doing it now or someone else as it's very easy to show someone the tasks, so the new owner doesn't need to be involved if necessary. I've just always been involved partially because it's one of the only sites I run right now. If that changes anything, please let me know.

Emmet, I will fill out the form soon.

Thanks!

Nov 30, 2011
Emmet Apolinario, C E P A
Sunbelt International
Franklin County, OH
Premium Broker

Nick, feel free to take the free test and get your score on how sellable your business is. You will get an instant score on how sellable your business will be. It will take ony about 13 to 18 minutes to answer the survey and you get a comprehensive report for your review. Go to www.MySellScore.com to take the free test. Questions you can email me: emmet@confidentialsale.com. Report is totally free no cost to you.

Nov 30, 2011
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The BAF Group LLC
MD

Nick, as a Broker, I don't normally make a cent, unless I sell something. (There are some circumstances where we act as consultants, so that is why I say "normally".) So, my response is not self-serving: It does me no personal good to tell you what I am about to say.

It would be extremely, extremely difficult for you to get the money you are seeking, under these circumstances. First, you have insufficient time invested in this business. There are no tangibe assets in an e-commerce company; therefore, three (3) years of earnings is critical to demonstrate the viability of this business and allow it to be financed. Second, the vast majority of Buyers for this kind of business are not owner/operators. They want something that is turnkey and arms length, because they are investors that own several such companies. They want a company that will run itself, without their daily input, and that means an entity that is normally larger and more mature, in order to attract them. Third, we have not discussed profitability, but your comment was that your pricing is based on Revenues. These kinds of businesses are not bought and sold based on Revenue; they are priced largely on Profit and ROI. The only alternative to most of this is when you own "intellectual property", specifically something that is patentable or copyrighted, which then serves as a platform for pricing. That becomes the "tangible" part of the business, rather than the Revenue and Cash Flow.

This is not to say your business is not worthwhile. But it needs to be customized for proper positioning, and matured for best pricing. From what very little you have related here, I do not believe your Company is ready to be sold, just yet. I would be happy to speak to you and provide more detail, if you wish. Don Barrick: (410) 715-0700.

Nov 29, 2011
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It's been about a year. It takes 2-3 people to run right now. Someone could handle about 50% of the business if I walked out tomorrow as I haven't trained the other people on the full aspect of it. I do not have a warehouse as there is none needed for this business.

Thanks!

Nov 29, 2011
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The BAF Group LLC
MD

Nick, how long have you had the business? How many people does it take to operate it? If you walk out tomorrow, is there someone/a staff that can run it without the necessity of you being there? Is there any kind of warehousing that you do, to sell products you might offer and if so, where is that located - generally speaking? (Midwest, East, Northeast, etc?)

Thanks.

Nov 29, 2011

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