Planning your exit strategy - Timing is everything.
If you have made the decision to sell a website, timing can play a crucial role in maximizing the sale of your internet business. It's important to work with a website broker that can help you plan your exit strategy and help you determine the best time to list your internet business on the market. When an entrepreneur wants to sell a website, a website broker can help plan the timing of the exit strategy to maximize the final sale price by listing the business at the time of the year when the company's profits are at their highest. Every business has some seasonality which will impact the revolving trailing twelve months net profit figure. For example, ecommerce retailers often see a surge in profits around the holiday season which results in a surge in the trailing twelve months net profit figure. Since the trailing twelve month net profit figure plays a major role in the valuation determined by the website broker, the total purchase price can be maximized by selling at the company's peak when seasonality is have the most positive impact on the annual net profit figure. While the old phrase "Buy low and sell high" is often used when referring to the stock market, that phrase can also be applied when it's time to sell a website as internet businesses are essentially investment vehicles.
Planning an exit strategy to sell a website is a delicate process that only an experienced website broker can help with. Sellers must consider many different variables including employees, supplier relationships, seasonality and more. In addition, the process to successfully sell a website usually requires a minimum of 30-45 days. Our website brokers have advised on deals in as little as 14 days, but these transactions are very rare as the industry standard is usually a minimum of 30 days. Finalizing internet business transactions takes time. It takes 1-2 weeks to cover questions / answers with buyers to secure a letter of intent. After the letter of intent is received, the buyer is usually entitled to 25-30 days of due diligence, followed by another 1-2 weeks to finalize the asset purchase agreement. As a result, it's important to plan a strategic exit strategy that takes into consideration the website's peak profitability as it relates to seasonality and the overall 30-60 days required to finalize the deal to sell a website. Ideally, the website broker should bring the internet business to the market approximately 30 days before the expected peak profitability to maximize the website's final sale price. In addition, there is seasonality with website brokers as it's very difficult to get deals finalized in December and April due to the long holiday season in December and tax season in April. The process to sell a website can be a complicated and delicate process, but our experienced website brokers fully understand the seasonality that impacts the sale of every website.