Large E-Commerce Seller of Equipment & Apparel for Outdoor Sports & Recreation
Location
Michigan
Business Broker
Situation
Husband and wife snorkel enthusiasts in Michigan built a highly successful business with a loyal customer base. Their e-commerce business experienced tremendous growth with customers seeking out not only their highly sought-after product lines and exclusive items available via Amazon and other e-retailers, but also their expertise.
After much success and growth of their e-commerce company, the husband and wife decided it was time to retire and sell the business. The couple wanted to identify and secure a buyer quickly as they were eager to sell the business and move onto the next step of their life. The seller’s tax attorney introduced them to Sarah Grossman, Principal of BayState Business Brokers, whom he had met through the IBBA.
BayState Business Brokers’ Approach
In early discussions, Sarah was thrilled to learn how well-prepared the sellers were: the business was well positioned to be marketed having strong financials, solid inventory control systems and a reliable staff in place. Since the business owners were in Michigan, all meetings took place via Zoom.
Sarah determined the business was ideally suited for a local individual buyer. The growing niche business was not a good fit for Amazon aggregators, so Sarah tapped into her network to partner with Sunbelt Business Brokers in Minneapolis, MN to co-broker the deal. This would best serve the sellers’ desire to identify prospective buyers in the area quickly.
Together, the brokers identified a sports enthusiast individual buyer with an entrepreneurial spirit. Financing was challenging as lenders were less interested in financing Amazon reseller businesses. Again, Sarah leveraged her vast network to introduce the prospective buyer to a lender from Colorado whom she had met at an IBBA conference; they specialize in financing e-commerce businesses. Financing was successful for the individual buyer and his wife with the help of Sarah’s relationships and resources.
Selling an e-commerce business includes unique deal terms that BayState Business Brokers facilitated in the negotiations between the seller and buyer. This included determining how the deal terms would account for work in process, the value of inventory, and returns including returns through Amazon.
Results
The terms were agreed to by both sides and the deal was complete. Both parties were satisfied with the price and the continued direction of the business. During the process, the seller and the buyer had good counsel that moved the process along. BayState Business Brokers co-brokering with Sunbelt Business Brokers was also successful and smooth. Sarah seamlessly completed this deal from Massachusetts for a Michigan-based business.
The sellers were thrilled to sell their business to a couple that reminded them of themselves and their love of sports. The sellers were happy to stay on and help the new owners transition into running the business.
What Our Clients Say
Outstanding results in troubled times. Sarah and her team took us from valuation to closing the sale during the Russian invasion of Ukraine and “looming recession.” When other brokers (representing other parties) seemed to be asleep, Sarah kept the potential deals moving along. We are 750 miles west of Boston, but Sarah appeared to have the best skill set for our E-commerce Sporting Goods retail store being sold to the next generation (Buyers were yet another 650 west of us!).
Sellers
