Selling Your eCommerce Business for Top Dollar

Do you run a eCommerce business? You've probably considered selling it at some point.

Over the last five years, this (your committed web recording host) has been fortunate to sell a brand. I sold my drifting image in 2016 for less than seven figures, while like this firm sold his Adult Coloring brand in 2019 for more than seven figures (it consumes me that he "won").

In this piece, I'll go over exactly how to sell your internet company organization for the most money feasible.

How Much Is Your Company Worth?

The fact that there is a truly fluid market for them and values are genuinely standard is probably the finest part about selling an online business.

Most internet businesses will receive a 2.5-3x multiple of the Seller's Discretionary Income (SBI). SBI is effectively your organization's net benefit with optional expenditures brought back in - items like your $1500/month vehicle rent, that meeting trip to the Dominican Republic, and so on.

Your stock costs will also be applied back to your selling price. Assuming you had a business that generated $225,000 in profit last year, $25,000 in optional costs, and $100,000 in equity, your business is worth the following:

Discretionary Income of Vender = $250,000
Vender's Discretionary Income multiplied by 2.75 equals $687,500.
+$100,000 in stock value
The total selling price is $787,500.

Source: https://www.marketwatch.com/press-release/selling-your-ecommerce-business-for-top-dollar-2022-04-11