The question on every seller’s lips.
And rightly so.
In fact, other than sky-high offers, the remarkably short timescales to exit is something that draws more and more FBA sellers to Amazon aggregators.
Think about it this way:
In as little as 30 days, you could be handing over the reins of your business and the weight of all the associated responsibility.
Sounds good, doesn’t it?
Of course:
The exact timescales vary from business to business and not every sell completes within a month.
What’s the sweet spot?
30-60 days in our experience, give or take a week on either side.
But before you jump ahead, there are one or two things to consider.
First up:
You need to prepare your business for sale.
To do this, watch step two of our three-step video series.
The same information is also found in our Definitive Guide To Amazon Aggregators.
Next:
You are going to want to speak directly with the head of acquisitions at each aggregator, not the junior staff answering their emails.
If your brand and financials fit the profile, it’s time to sign a Letter Of Intent (LOI).
But not before you have:
1. Read our ‘What can you and should you negotiate?’ question
2. Talked to your accountant to figure out the total taxes payable
3. Discussed the pros and cons of the offer with a lawyer
When does the 30-60 day timer start?
The second you sign an LOI.
Which effectively ties you into an exclusivity period with one aggregator only.
Now:
The terms of most LOIs will state that the buyer (aggregator) has between 60 to 90 days to close.
And whilst this period is negotiable, it means that you’re unable to discuss offers with other prospective buyers until the LOI term has lapsed.
Make no mistake:
Due diligence is intensive and things can crop up unexpectedly.
It is for this reason that most Amazon aggregators will insist on a 60 to 90-day term within the LOI, despite this being longer than the average 30-60 day ‘offer to exit’ period.
Interested in finding out more?
Click here to compare over 150 aggregators in 3 simple steps. We will then reveal the select few companies that are most likely to offer you the highest valuation.
