How do I use selling an online business for ecommerce?

Expert answer · sourced from 1 podcast episode

Short answer

The biggest change in selling an ecommerce business is the end of the M&A frenzy. Buyers now prioritize stability and clean operations over unsustainable growth. To sell well today, you must prove your business is a durable asset with impeccable financials and documented processes.

TL;DR

The biggest change in selling an ecommerce business is that the frenzy is over. Buyers are now looking for stability over pure top-line growth. For a few years, money was cheap and ecommerce was booming, so acquirers were buying companies at high multiples, sometimes overlooking messy financials or founder-dependent operations. That has changed. Today, buyers are more risk-averse and the standards are much higher.

This shift means that what worked before, like highlighting a huge but temporary spike in revenue, no longer holds the same weight. Nate Lind made the point on eCommerce MasterPlan that you have to be realistic about whether it's truly a seller's market for your specific business. Acquirers are doing much deeper due diligence. On Ecommerce Conversations, business broker Mike Handelsman explained that buyers are digging into the sustainability of customer acquisition, supply chain reliability, and the P&L. Any skeletons in the closet will be found, so it’s better to address them long before you decide to sell.

The most important thing you can do now is build what Michal Oron, on Ecommerce Coffee Break, calls a

Cited episodes (1)

  1. eCommerce MasterPlan — Is now the time to sell you eCommerce store? With Nate Lind cover art

    Is now the time to sell you eCommerce store? With Nate Lind

    #1 · eCommerce MasterPlan · with Nate Lind

    Explains how the shifting market impacts the decision to sell your business right now.

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