Episode 14: The Exit and How to Prepare a Business for a Successful Sale

 

This blog is all about what to do when you have fulfilled your business goal, expanding into an international marketplace to such success that you are finally ready to let the business go and sell it for a profit.

Over the past 14 weeks, we’ve delved into different areas of business expansion overseas – tapping into the finer details you need to consider, the network of contacts you need in order to build a thriving business, and the decisions you need to make along the way. This final part looks at the importance of aggregators – with tips to maximise your valuation and get the best possible price.

But first, what is an Amazon aggregator?

 

 

Amazon aggregators and how to join one

An aggregator is a business that acquires and consolidates smaller businesses and enterprises like yours, with the aim of growing them and turning them into global brands.

In short, if you want to sell your business then you will be looking to sell it to an aggregator who sees it as a viable business investment. The benefits of selling to an aggregator include the ability to get a good price for your business, with aggregators often in a position to give you two, three, four, or even five times the value of your business. With those funds, you have the ability to get involved in a new business or launch a new product internationally. 

So, with the exit being a big part of many sellers’, how do you get your business to a place where it is ready to sell?

Preparing your business for sale

Amazon aggregators are in the market for businesses and brands that fill a very specific niche in the market, or that have a broad customer base and therefore a high sale rate among customers. They want businesses and brands that have proven to be successful on their own two feet, and that will benefit from being brought into the fold of a broader business strategy – with an operational structure that works and that can continue to work under new ownership.

To look at product groups specifically, there are some that are less attractive to aggregators than others. One hit wonder products (like fidget spinners) are generally avoided by aggregators, due to selling extremely well for a short period of time before sales tail off and the product declines in popularity. Similarly, anything that can be easily replicated or copied is likely to be unattractive to an aggregator, and many clothes brands will also be passed over due to being too complex to manage in light of ever-changing trends in the long run.

In terms of what aggregators do want, products that are likely to sell well in the long run with multiple variations and opportunities for expansion will always be highly coveted. When paired with a solid foundational sales strategy and existing success, such brands that meet this criteria will often find that they have no problem selling their business.

Here are five tips for preparing your business for sale.

5 tips from GEE     

1.     Get a signed agreement in place with your suppliers, so that when you do sell the business those suppliers remain on board and committed to the brand or business.
2.     Update your Amazon storefront URL, so that it is ready for new branding. This also means warning customers of a potential change in branding and detailing, so that they are not surprised or put off by the changes.
3.     Map out the entire business in a single page, so that aggregators can read quickly and instantly see the benefits. Without this, they are unlikely to become invested in your business plan.
4.     Estimate how much your business is worth and share a comprehensive breakdown which offers a realistic look at the finances.
5.     Provide as much information as possible so that the aggregator has everything that they need in one place.

On top of that, it pays to make sure that your business proposition is as on-trend and attractive as possible to a potential buyer or aggregator. This means understanding and demonstrating that you know your target market, showing the demand for your products, and showcasing your commitment to areas like sustainability which genuinely matter to a modern audience and customer group.

Finally, what better way to showcase and maximise your potential than by partnering with an enterprise like GEE which is committed to and has vast experience of successful expansion projects across a multitude of industries? With the help and support of GEE, we can not only help your business to grow for the immediate future, but with an aim to make it as valuable and successful as possible.

The end of the series

And with that, we come to the end of this webinar series, all about expansion into European and UK markets, where we have learnt how to build a profitable business that can expand and grow into new territories without falling over the obvious stumbling blocks on the way. As part of this series, we’ve covered everything from market research to the complexities of compliance – all with an eye to giving you the best possible business that you can keep growing or ultimately sell for profit.

Whatever your aim, we hope that this series has inspired and helped your journey. And for tailored advice, don’t hesitate to get in touch with us and find out about the packages we offer.