Alex Champagne, Director of Sales of Empire Flippers, talks about FBA market trends, best optimization practices, and tips on selling your business for the most money. He also touches on the significant impact of the CoronaVirus pandemic in the eCommerce industry.
WHAT YOU’LL LEARN
- Introduction on the Empire Flippers
- What are Buyers looking for in an FBA
- Steps Empire Flippers undertake in Selling an FBA
- Tips for FBA sellers
- Empire Flippers is one of the most successful brokerages for FBAs today. They have already sold 273 FBAs over the years for more than $50 million. Last year alone, they sold 63 pure FBA companies at an average of 28 to 29x monthly multiples.
- There are different buyers in the market. Some are just looking to invest while others are looking for acquisitions that would more business at a market they already know. What is crucial for these buyers is clear and clean financial records as well as prospective of the seller for growth in the business. In order to attract buyers, it is important for FBAs to have the numbers the buyers are looking for.
- It is also important for sellers to be completely transparent to buyers in order to secure their trust.
- Empire Flippers have their own dedicated teams to help walk the seller through the entire process. There is a seller team that would help in the valuation of the company and a migration team that would help transition the buying process. This whole process takes an average of 3 months for sale to take effect.
- Increasing profitability of the company and potential for growth are the two things that buyers are looking for from a seller.
- The coronavirus has put a lot of people in a holding pattern that is affecting the transactions now.
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