Pass FBA Business Due Diligence - the 3 Must Haves - SellerPlex

EPISODE 18: Pass FBA Business Due Diligence – The 3 Must-Haves with Chris Yates, Owner of Centurica and Rhodium Community Founder

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Chris Yates, partner at Centurica, the biggest FBA business due diligence company in the e-commerce acquisition space, walks through the interests and concerns of the buyers of e-businesses. He is also the founder of the Rhodium community, composed of people interested in buying and selling on-line businesses.

 

FBA BUSINESS DUE DILIGENCE – WHAT YOU’LL LEARN

  • Centurica’s Due Diligence Process
  • Determinants of  FBA Business Due Diligence
  • Deal Killers
  • Tips to Prepare for Successful Buy

KEY POINTS

  1. Centurica primarily works with buyers in conducting FBA Businessdue diligence on sellers, making sure that the buyer’s objectives are met and there is an appropriate fit.
  2. Trust is the most important thing; it is not just between buyers and sellers, but also all the agencies that the buyers and sellers are working with, including brokers, 3rd party evaluators and the like. Most deals do not push through due to the breaking of this trust.
  3. As early as now, co-mingling of funds, either between businesses or personal and business, should be cleared from the books to show true performance of the business. As much as possible, keep separate accounts per business.
  4. FBA Business Due diligence looks beyond financials. Marketing performance and inventory treatment are equally looked into.
  5. The process and level of due diligence is dictated more by the buyer and not just the size of the business being bought.
  6. Listing an e-business as SBA qualified helps in increasing the buyer’s pool.

RELEVANT MATERIALS

CONTACT CHRIS

To find out more about Rhodium Weekend, the peer-group community for online business owners and investors, make sure to visit the website at https://rhodiumweekend.com/.

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