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How to sell your Amazon FBA business
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The business sale process

The business sale process

Updated:
Jul 25, 2024

You're ready to leave the daily grind of Amazon FBA behind and achieve your own Five Star Exit. That's a great goal – but how do you get there?

The journey from Seller to Sold follows a clear path. But it takes time, and skipping steps will make it harder to reach your dream. Let's start by looking at the company sale process so you understand what's ahead.

The five-step process of selling your Amazon FBA business

There are five key stages in the Amazon FBA Exit process.

1. Preparation

  • Decide you want to sell
  • Start preparing yourself and your business

2. Go to Market

  • Start building your exit team (transaction attorney, accountant)
    • Consider hiring a broker or M&A advisor
  • Get a company valuation estimate

3. Find a Qualified Buyer

  • Start marketing your business to potential buyers
    • Use a broker, marketplace, go direct, etc

4. The Deal

  • Receive sheets or LOIs
  • Start negotiating terms
  • Agree on terms
  • Begin due diligence

5. The Sale

  • Complete due diligence
  • Sign the final sales agreement
  • Complete the handover process
  • Start your "life after Amazon"

How long does the sale process take?

The sale process can last anywhere from a few weeks to many months. It depends on a range of factors like how prepared you are, the type of buyer, and the deal's complexity. We'll discuss these in detail throughout the guide.

Expanding timelines

Of course, if something goes wrong then those timelines can quickly expand. And many things can go wrong. 

You could put your business on the market and find that buyers aren’t willing to meet your price. In that case, you’d need to return to the preparation stage and work hard to to raise your valuation before restarting the sale process again.

 

Or, you could accept an offer from a buyer and start due diligence. A few weeks go by, and the buyer informs you that they’ve discovered a problem. They attempt to ‘retrade’, which is a fancy way of saying “change the terms of the deal”. 

This would leave you in a tough situation. You could reluctantly accept their new terms and be far less happy with the deal. Or you could choose to push back. But this could lead to them walking away completely, sending you right back to the start of the “Go to market” stage.

Preparation is essential

The further you are in the sale process, the more expensive issues become. It's crucial to prepare your business and fix potential problems before you start selling. We know it's hard to find time when you're running your Amazon business. But you can't sell until everything is organized, and it's much harder to do this with the stress of a live deal.

We'll discuss preparation much more throughout the guide. For now, let's move on to the next steps in your Five Star Exit journey.

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About Five Star Exit

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.

Oliver Stevens, Co-founder of Five Star Exit
Oliver Stevens
David Turnbull, Cofounder of Five Star Exit
David Turnbull

Disclaimer

We are not lawyers, accountants or financial advisors.
The content on this website and associated resources should not be taken as legal or financial advice.
You should seek appropriate legal, financial and professional advice before attempting any company sale.