Let's make the sale process more concrete by sharing our Amazon FBA business sale experience.
A potential buyer approached us. We arranged a call and spoke with their team. We could see they were serious and decided to move forward.
The buyer signed a Non-Disclosure Agreement (NDA). We gave them limited access to our Amazon sales data and inventory costs so they could come up with a valuation for our business.
The buyer sent over a Term Sheet, a document outlining the price they were offering for our business and the other essential terms of the deal.
We started negotiating the price and terms with the buyer.
Both sides eventually agreed and signed the term sheet. We took our business “off the market” for a contracted period while we worked towards completing the sale.
The Due Diligence phase began. The buyer had many questions about our finances, operations, legal structure, etc. They wanted to see documents to back up our answers and limited access to our Amazon account so they could check reports, look at our advertising performance, etc.
Due Diligence was progressing, so lawyers for both sides started working on the formal purchase agreement.
There was some back and forth as we tried to nail down the final details of the contract. A signing date was set when it felt like both sides were close to an agreement.
The signing day arrived. We digitally signed a series of contracts and documents, the buyer initiated bank transfers, and our company was officially sold.
The money arrived in our bank accounts 🥂
We worked with the buyer to complete several handover tasks. When we were done, it was time to start our life after Amazon.
The process took a little over two months, from the first call to the money being deposited in our accounts. But
you may have noticed that we skipped some of the company sale process steps I outlined earlier.
1. Preparation: We didn't take the time to learn about the sale process or organize everything beforehand. Instead, when a buyer contacted us, we jumped straight to the "Go to Market" stage.
2. We didn't use a broker or M&A advisor.
3. We didn't shop around for multiple offers.
You might wonder why we took this approach, how it affected our sale, and whether we were happy with the result. We'll be answering these questions throughout the guide.
But first, let's address another crucial question: When should you sell your Amazon business?
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Five Star Exit was founded by Oliver and David, two friends who sold their Amazon FBA business for millions of dollars.
How to sell your Amazon FBA business leverages their hard-won experience to provide Amazon Seller's with a clear roadmap to a life-changing exit.
Helping Amazon Sellers achieve life-changing exits from FBA.
