SELL YOUR WEBSITE BUSINESS

FREQUENTLY ASKED QUESTIONS

• How long will it take to sell my internet business?

  The time frame for finalizing a transaction will depend on a number of different variables including the financial health of the business (uptrend vs. downtrend), deal structure flexibility (all cash vs. partial seller financing), but the most important factor will be the asking price. We generally set our clients' expectations at 60 - 90 days for a high quality internet business with strong financial performance, but we have closed deals in as little as 21 days. The key to finalizing a transaction quickly is good communication and thoroughly understanding your business as buyers will ask detailed questions about growth potential, marketing, daily operations, and questions about the financial statements. Our internet business brokers will guide you every step of the way to keep the process moving as quickly as possible until the deal is closed.

• Should I expect offers with seller financing?

  Each transaction is different, but some businesses will require seller financing due to their overall nature, especially if a business is suffering from an annual decline in profitability. While we always prefer to deliver all cash offers to our clients, being open to the idea of seller financing can often times result in a higher overall purchase price and offers advantages to both the buyer and the seller. For transactions that do involve seller financing, the deal structure will usually reflect seller financing of 20% or less of the total purchase price, financed over 1-2 years, with the remaining portion of the purchase price being paid in cash at closing. Offers including seller financing that exceed 20% of the total purchase price are usually not considered because of the higher risks associated with that type of deal structure. There are many different types of seller financing structures (monthly amortized payments, performance based earn-out, etc.), but it is not uncommon for internet business transactions to include some type of seller financing.

• How do you protect my confidential information during the sale?

  We take numerous steps throughout the process to ensure our clients' confidential information is protected. There are several provisions in our standard listing agreement that cover confidentiality and we also ensure every buyer must first sign our Non-Disclosure Agreement, before receiving a company prospectus. In addition, we keep all "trade secrets" of each business completely confidential, even during the due diligence phase, ensuring the truly sensitive information is only revealed days before the closing.

• How do you determine the valuation for an internet business?

  There are many different valuation methods used for determining the value of a business, but the most widely used and accepted valuation method for internet businesses is the earnings multiple analysis formula. While we consider many different variables (tangible and intangible) when calculating the asking price, the most important variable that has the biggest impact on the asking price is the TTM (trailing 12 months) net profit figure (or SDE, Seller's Discretionary Earnings). The asking price is established by multiplying the annual net profit figure by a multiple range, which is usually 1.5x - 4x seller's discretionary earnings. However the exact earnings multiple will always depend on a number of different variables including the TTM net profit figure, overall business model, financial profitability trends, traffic sources, age of the business, growth potential, market conditions and many other factors. You can always get a free business valuation from iAcquisitions at anytime by completing our business valuation form.

• Why should I use a website broker to sell my internet business?

  Navigating the complex process of selling an internet business can be challenging without professional seller representation. Similar to the reasons you would hire a real estate broker to sell your house, it's equally important that you use a professional internet business broker to sell your online business, especially since your business is usually a person's most valuable asset. At iAcquisitions, we handle everything from start to finish, including preparing a detailed company prospectus, effectively marketing your business to find the right buyer, negotiating a favorable deal structure, providing guidance throughout the due diligence phase and assisting with the contracts (Letter of Intent and Asset Purchase Agreement), ensuring you have an experienced professional protecting your best interests throughout the entire process.

• Why should I use iAcquisitions to sell my online business?

  At iAcquisitions, we are exclusively focused on advising on internet business transactions. Unlike traditional business brokers, 100% of our transactions are internet businesses, ensuring our clients get the professional representation needed to maximize the final sale price. All of our internet business brokers are entrepreneurs just like you and we have personally started, operated and sold numerous successful internet businesses. We have the first-hand experience needed to guide you every step of the way and our team's financial background (Finance / Business Management bachelor degrees) gives our clients a competitive edge, which simply can't be matched by our competitors. Our proven listing strategy and valuation formula has resulted in an 80% close rate since inception and our internet business brokers have over a decade of experience in the online market.

• Do you thoroughly screen your listings?

  Absolutely. We are very selective about the internet businesses that we choose to represent and we only take on high quality acquisition opportunities. At iAcquisitions, we know what it takes to get deals done and the buyer's ability to verify the financial statements represented is the most fundamental part of the overall process. Every client is required to provide at least 3 years of detailed financial statements, traffic reports and provide answers to a detailed questionnaire that is specifically tailored to each business. In addition, we always thoroughly explain the due diligence process to the sellers to ensure the financial statements represented in the company prospectus can be independently verified with company bank statements, merchant account statements and company tax returns. iAcquisitions does not verify the financial statements against the 3rd party documentation as this is the sole responsibility of the buyer as a part of their due diligence.

• How can I verify the financial statements of the business?

  During the due diligence phase, the seller will provide company bank statements, merchant account statements and company tax returns, which will collectively serve as proof to verify the financial statements represented in the company prospectus. Additional 3rd party documentation might also include supplier invoices, PPC advertising invoices, etc., but iAcquisitions will disclose the contents of the due diligence package before the Letter of Intent is signed for each business.

• How do I sign up for your new listing alert emails?

  The sign up process is simple - simply enter your name and email address on the "New Listing Alert" sign up box on the "Buy" page. Each time we bring a new listing to the market, every buyer enrolled in our new listing alerts database will receive advance notice of our new listings, before we officially list them on the MLS sites. Signing up for new listing alerts email list is the best way to get the inside track on the exclusive high quality acquisition opportunities represented by iAcquisitions.

• Will your clients accept offers that include seller financing?

  Every seller has different expectations for deal structure, but seller financing is a possibility for certain internet businesses. Many sellers prefer an all-cash deal structure, but certain internet businesses may warrant partial seller financing because of the overall risk level or if there is a declining trend in annual profitability. Generally, most sellers will not consider offers that include seller financing which exceeds 20% of the total purchase price. For the transactions that do involve seller financing, the financing period is usually between 8 - 24 months with 3% - 5% interest, depending on the overall deal structure. If you really want to acquire a specific internet business, we always recommend presenting a strong all-cash offer as seller financed offers carry a higher level of risk for the seller. Again, each seller has different expectations for the overall deal structure and we recommend speaking with an iAcquisitions internet business broker for more details.

• Can I obtain bank financing for internet business acquisitions?

  It is extremely rare that banks will finance an internet business acquisition. As a result, we require our buyers to already have their capital secured before advising the seller to sign a Letter of Intent. The primary reason that banks don't lend on internet business transactions is because most of these businesses do not include any hard assets to collateralize the loan with. When you buy an internet business, the primary asset that you're buying is the established revenue / net profit stream. Although many SBA bankers will tell buyers that the loan process only takes 3-4 weeks, the reality is that the SBA process usually takes up to 2-3 months, with no real guarantee that the bank will actually fund the loan. This presents a huge risk to the seller when compared to working with an all-cash buyer that already has their capital secured and is the primary reason we advise our clients to never accept an offer that is contingent on bank financing.

• How do you determine the asking price for your listings?

  There are many different valuation methods used for determining the value of a business, but the most widely used and accepted valuation method for internet businesses is the earnings multiple analysis formula. While we consider many different variables (tangible and intangible) when calculating the asking price, the most important variable that has the biggest impact on the asking price is the trailing 12 months (TTM) net profit figure (or SDE, Seller's Discretionary Earnings). The asking price is established by multiplying the annual net profit figure by a multiple range, which is usually 2x - 4x seller's discretionary earnings. However, the exact earnings multiple will always depend on a number of different variables including the TTM net profit figure, overall business model, financial profitability trends, traffic sources, age of the business, growth potential, market conditions and many other factors. You can always get a free business valuation from iAcquisitions at anytime by completing our business valuation form.