# 1 DigitalExits.com – Best for High-End Ecommerce Businesses
Digital Exits is our # 1 recommended website broker for 2021. They represent websites making between $ 100,000 and $ 20 million a year in profit. They are best if you have an established business over 2 years old that makes at least $ 100,000 per year.
# 2 Flippa.com – Best for Startups, Sites, SaaS business and e-commerce sites.
Flippa handles all sizes of online businesses. From small sites and blogs (which cost less than $ 100) to large sites that generate significant profits (100k PA +) and everything in between.
If you are a seller, they claim to have over 200,000 buyers looking to buy your website, online business, app, or domain.
Founded in 2009, they have sold more than 250,000 companies sold around the world.. Click on the banner below to see some of their current listings.
It doesn’t matter if you are a buyer or a seller, IncomeDiary recommends that you register with Flippa.
# 3 FoundersIB – Best Big Ecommerce Companies
Founders Investment Bank is ideal for sites that generate more than $ 20 million a year in profit. They specialize in larger deals and conduct more strategic transactions.
Would you like our help to sell your business online?
Selling a business is one of the most important financial decisions you will make. Don’t get it wrong! If you own an eCommerce, Amazon FBA, SaaS and Tech, Service-Based, Adsense, Affiliate, Digital Products, or Content-Based Business and are considering selling or just want a valuation, our team of recommended website brokers can help. : Today
First let’s start with the number one question all business owners ask us …
What is the value of your ecommerce business?
Always the first question that clients ask us at Digital Exits is what is the value of my business? The answer to any valuation question is what the market will pay. The graph below shows the distribution of multiples that e-commerce companies sold in a report that we analyzed.
The multiples range from 0.5X to 6.6X in this distribution chart. This means that if you have a business that generates $ 300,000 in net profit per year, the valuation range is $ 150,000 to $ 1,980,000. Visually, what you can see on the chart is that most companies sell between 1.5X and 3.5X. This supports the common belief that a small and medium business sells in the 2 to 3 times profit valuation range.
Are the Biggest Ecommerce Companies Worth More?
Yes. The bigger the business, the higher the value it will sell for. As you can see from the graph, the bigger the deal, the higher the sell multiple. So a company that sold for 6 million on average was sold for a multiple of 3.5 times earnings, which would mean it was making $ 1.7 million in profit per year.
What is an ecommerce trading broker and what do they do?
An e-commerce business broker sells established e-commerce businesses. The role of the company is as follows.
- Value e-commerce businesses
- Develop a sales document
- Market the business to qualified buyers
- Field offers
- Assist with due diligence
- Help with closing the deal
- Manage the administrator
How does the process work?
The sales process is fairly straightforward, but it can be more complex and time-consuming depending on the size of the business. In general, most sales will be structured like this:
- Know what your business is worth with a valuation
- Digital Exits prepares the sales document
- Market your business to qualified buyers
- Negotiate an offer
- Transfer assets and money
- Help train the new buyer
Why would you hire a broker?
There are two main benefits of using a broker:
- Qualified buyer database
- Knowledge and experience in the negotiation process
What you don’t have as a business owner is a network of buyers looking to buy businesses like yours or the knowledge or time to go through the process.
How long does the process take?
The following graph represents the summary of all the transactions we have completed and the average time it took us to complete them. As you can see, more than 50% of deals close in 90 days and more than 70% close in four months. The reason this is so fast is that there is a great demand to acquire established online businesses.
How much they cost?
An ecommerce broker will charge around 10-12% of the total sales price.
This fee is due to the success of the deal, so if you are not paid, they are not paid.
How much should my business be making to hire a broker?
If your business makes up to $ 3,000,000 in net profit per year, a broker will be able to help you sell. If your business makes more profit than that, we suggest you use a small market M&A business. Contact us for recommendations on the best company to work with.
Why do buyers say “No”?
Here are some of the top reasons a buyer will decline a deal:
- They just don’t like the business
- The niche doesn’t fit
- They can’t verify statistics and data
- They find something in the due diligence that makes them reconsider the offer.
- The price is too high
- Buyer financing fails
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