If you're reading this guide, you likely own an Amazon FBA business and are considering selling it. So, let's start with a simple question: Why do you want to sell?
You likely have some goals or desired outcomes in mind. When you understand these motivations, they can help guide your decisions throughout the selling process.
It is essential to have specific goals in mind for your sale. These goals will help you make decisions that ensure the outcome of selling your company aligns with your desires.
The type of goals you have can influence your sale timeline. For example, selling early might help you achieve one goal but prevent you from reaching another.
Let's dive deeper into each category.
When your goals are primarily personal, you'll need to balance the desire for a strong financial outcome with how much time and work you're willing to put in. For instance, if you want more family time while your kids are young, you might accept a lower sale price for a quicker exit.
*Tip:* Consider whether selling is the only way to reach your goals. Could hiring a manager to handle day-to-day operations give you more free time while maintaining ownership?
If you're driven by financial goals, selling is likely in your future – it's more a matter of when. You'll need time to maximize your company's value before exiting. This process requires planning and preparation to get the best possible price.
*Important:* It’s essential to make sure the sale of your business will actually help you reach your financial goals. Get an accurate valuation and consider "extras" like taxes and deal costs. It's wise to consult a financial planner or accountant to avoid costly mistakes.
If your goals are business-related, selling might not feel urgent. You may daydream about starting a new venture but find it’s easy to put off when you're busy with your current business.
But every decision – including not taking action – has an opportunity cost. If your next idea has the potential to be more successful than your current business, you might want to consider selling sooner rather than later.
It's easy to dream about how great life would be if your business were much more valuable. But before you start setting huge growth-focused goals, ask yourself:
We grew our business to almost eight figures in revenue with two partners and one full-time employee who joined near the end. Did we dream about scaling even further? Of course! But we also valued our freedom and independence. We knew that continued growth would require big changes – hiring teams and shifting to management roles – and that’s not the kind of life we wanted for ourselves.
Without goals, you could put your business on the market and take the first offer that comes along. (Just kidding – please don't do that!)
Take some time to develop meaningful personal, financial, or business goals. They'll influence many decisions throughout the sale process. For example, if you decide to maximize your financial outcome, your timeline, preparation, deal terms, and negotiation strategy will look very different from someone focused on a lifestyle change.
Remember, selling your Amazon FBA business is a big decision. By understanding your goals and what you really want, you'll be better equipped to navigate the process and achieve an outcome that truly satisfies you.
Closely linked to your goals is the broader idea of what you plan to do with your life after Amazon. And I mean this quite literally. When will you wake up each morning? How will you fill your days?
If you don’t have a plan or idea for your life after Amazon, it’s easy to make poor decisions that negatively impact your quality of life later. We’ll discuss this in more detail later in the guide.
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Let's talk about another crucial personal factor: your health. This can range from being a significant consideration to barely a factor when deciding when to sell your business.
If you or a loved one are dealing with serious health issues, first and foremost, you have our deepest sympathies. We hope things improve soon. However, if your situation might prevent you from operating your business in the future, you need to factor this into your exit planning.
Remember:
If you're working towards a financial goal that's 18 months away, but you're unsure whether you'll be able to work in a year, you should prioritize preparing for your exit now.
You may be tempted to skip this section if you're in good shape. But here's the thing: you will exit your business one day, either through planning or fate. Healthy people can get sick, accidents happen, and we all grow older. Even if you're not planning to sell soon, we strongly recommend having an exit strategy in place.
Pro tip: Get your business "Ready for Exit" at all times. Don't fall into the trap of thinking, "I'll sort that out later." In a worst-case scenario, your business could fail, leaving you and your family with nothing. Don't take that risk – be prepared.
Now, let's consider how your emotional state can influence your sale timeline.
Are you happy owning and operating your business, or would selling bring you more joy? If your business constantly brings you down, consider moving up your sale timeline.
Before making any drastic decisions, try:
Have you lost all interest in selling on Amazon? If you can't be bothered opening Seller Central each morning, it might be time for a change. Try taking a break to recharge. If you come back still lacking motivation, start preparing for your exit.
Remember: Amazon FBA is extremely competitive. If you're not motivated to keep growing your business, it's better to exit before your performance (and valuation) start to suffer.
Is the stress of owning an Amazon business becoming too much? The day-to-day grind of running an international e-commerce business can be overwhelming. If genuine concerns are arising, start planning your exit now, before you reach your breaking point.
Are you constantly feeling tired and run down? Consider:
If these don't help and you're nearing your limit, it's time to plan your exit.
Finally, let's consider whether you're ready for the sale process itself. There are two key aspects:
Do you understand the company sale process? Can you identify potential deal-killers? Do you have a plan to increase your company's valuation? If not, don't worry – these topics are covered later in this guide.
Are you fully committed to selling your company? This sale process requires:
Don't start before you're truly ready. You don't want to spend months preparing and investing in attorneys and accountants, only to pull out when things get tough.
If you're confident in your knowledge but not ready to commit, re-examine your goals and motivations. Are they as crucial as you think? You may be focusing on the wrong areas. If money isn't your primary motivator, try focusing on another important aspect of your life.
Remember, selling your Amazon FBA business is a significant decision. By considering your health, emotional well-being, and readiness for the process, you'll be better prepared to make the right choice at the right time.
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.
