You know what I’m tired of hearing?
“Lawyers are a waste of money”.
If I had a dollar for each time I’ve heard that statement over the past 6 months, I’d be a (very) rich man.
As an entrepreneur who has built a successful Amazon FBA business, I’m sure you dabble in most things.
Whether it’s inventory management, product labelling and compliance, sales copy, marketing, PPC, product launches, customer services, and so on.
There’s never a dull day with Amazon, right?
But no matter how multi-talented you are, when it comes to selling your Amazon business, you simply cannot proceed without the help of a lawyer.
Okay, I know what you’re thinking:
Lawyers are expensive, and what happens if my deal falls through?
I get it.
Because if we’re being honest, both Richard and I both had similar reservations.
But here’s the thing:
If you don’t hire a lawyer, there’s a 99.9% chance that you will regret it, post-exit.
I would go as far as to say that it would be the single biggest mistake you could make throughout the entire history of your Amazon business.
Am I making myself clear?
So know you know that you to have to hire a lawyer, the next question is when.
The short answer:
As soon as you receive a Letter of Intent (LOI) from the buyers.
An LOI sets out the buyers’ (aggregators) intentions regarding the purchase of your FBA business.
And whilst the terms of the deal can still be negotiated after signing the letter, we strongly encourage you to hire a lawyer before you put pen to paper on the LOI.
To put that in layman’s terms:
Do not underestimate the value a lawyer can add to your sale at this early stage.
Where do you find a decent lawyer?
If you are in the UK, we highly recommend Tony Johnston from Jaswal Johnston LLP, who completed the sale on behalf of both Richard and myself (Martin).
Tessa Trevelyan Thomas from Fladgate LLP is also an excellent lawyer, specialising in FBA business deals.
For the USA and other worldwide sellers, it’s likely that your contract terms will be regulated in America.
With this in mind:
Paul Rafelson is already well known within the FBA seller community for spearheading the campaign against Amazon Sales Tax.
Paul’s USA-based practice, Rafelson Law PLLC, provides legal services to US sellers exiting their business. Over the past 12 months, he has serviced more than $100m in sales contracts with Amazon aggregators.
A simple Google search throws multiple specialist Amazon exit lawyers, based in the US.
We’re unable to directly recommend anyone else here but, as with all things Amazon, the community should be on hand to assist if you post in the seller forums and Facebook groups.
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.