Selling process through a good broker
The selling process listed below is an abbreviated version of the process covered in detail in this top quality guide by Quiet Light Brokerage. If you are thinking about selling your FBA business through a broker, this guide is definitely worth a read. Not all brokers will follow this exact process - they all have a different way of doing things. However, as a starting point, it does provide valuable information:
Produce clean financials:
- As discussed above, A2X Accounting software makes this task a breeze for FBA businesses.
- Once your accounts are clean and easy to understand, create an addback schedule to determine SDE.
Determine the "value range" - multiple of SDE range that can be expected from sale of the business:
- Your broker can help you to estimate how much your FBA business is worth. Refer to section 3 of this guide for more information on factors that affect the value range.
Determine costs/benefits of selling your business:
- Costs that are incurred when selling your business include broker’s commission, legal fees and taxes.
- Tax is generally payable on the proceeds from selling your business. Tax is not paid on inventory sold at cost.
- Consult professionals where required to get accurate advice.