Selling your business can be complicated in so many ways. Both mentally and emotionally, it can be difficult to navigate and scary to do alone. In cases like this, it might be best to hire a broker to handle the troublesome details. So in this review, we take a look at a broker called Website Closers.
Website Closers specializes in selling online-based businesses and eCommerce retailers. By selling on a marketplace-type platform, they offer a unique experience to anyone looking to buy or sell their business.
Website Closers founders Jason Guerrettaz and Ron Matheson started the firm to offer a unique perspective to sellers. Their years of combined experience in eCommerce allows them to know the ins and outs of selling web properties.
In this Website Closers review, we will discuss their various services and experience. This can help you decide whether Website Closers might be a good choice to help you sell your online business.
Types of Businesses Website Closers Sells
Website Closers specializes in web-based retailers and the online service industry. Digital businesses make up most of their roster which includes many different industries.
Though mainly dealing in digital brands and services, they also sell eCommerce retailers and product lines. This means that they are not just limited to digital products and services. A wide array of industries brings in a wide array of potential buyers.
Website Closers sells many digital marketing businesses. These include things like solo ad sales, content development, and web design services. Graphic design firms and marketing agencies make up a large portion of their business inventory.
Another industry that Website Closers specializes in is skincare and beauty. Many health and beauty brands are listed for sale and many more have already sold. This industry works well alongside eCommerce and fits into their demographic.
If a product is branded and the business is generating sales online, it can be sold. Website Closers has a system in place and several niches of business that they cater to. Because of this, their clientele is quite diverse.
They do not deal in brick and mortar businesses. Because they have narrowed down their expertise to web-based commerce and service, they can offer more specialized resources.
Sizes of Businesses Website Closers Sells
There is a fairly large array of business sizes already listed for sale. There are agricultural eCommerce businesses and athletic pain accessories on the smaller end. On the larger end are some entertainment agencies and nutritional supplement companies.
With such a wide range of business sizes, it can be important to consider how they determine size. Website Closers considers a business to be small if it has a worth of under $6M. There are some loan benefits that come with that classification and they can help you take advantage of them.
These classifications are an important reason to hire a broker when selling your business. Due to their experience and knowledge, they can help you benefit from things you didn’t know about. This can be especially handy during such a stressful time like selling a business. No one wants to miss out on good opportunities.
In general, Website Closers sells businesses for anywhere from $50,000 to $200,000,000. There is no size of marketable online business that they haven’t sold. The team is made up of entrepreneurs and business owners. Because of this, they know how to best mediate a sale of all different sizes of business.
Website Closers Valuation Process
The first step in selling your company is to find its value. Having a coach to help you through the process can alleviate some of that stress. It can also help you determine whether or not your business is even ready to be sold.
The experience they have gained through the hundreds of transactions they have mediated helps with this process. By knowing market values and best practices regarding lending, they know how to navigate each sale.
Website Closers uses a valuation calculator to help you figure out the value of your business. Using a series of financial questions, the calculator can help them determine its marketability. This can be a helpful first step towards finding a quality buyer that knows your business’ monetary and quality value.
They also offer a free valuation consultation for a more personalized approach. There are a number of factors that they consider when valuing a business. Things like interest, taxes and depreciation will be considered in the consultation. This valuation process has been used on hundreds of businesses over the course of Website Closers’ existence.
The consultation will also offer higher value ranges than the website’s calculator. This means that by getting a more personalized look at your businesses assets, they can usually find higher values.
How the Valuation Calculator Works
The first step of the valuation calculator is to enter your business’ discretionary earnings. This is the value of what you earn minus any liens, taxes or other expenses. It also takes into account your business’ growth over time in order to account for time spent in escrow.
The second step of the valuation calculator is determining the multiple of earnings factors. This helps define some high level factors that could affect your business’ value. This is where things like staff, infrastructure and risk profiles come into play. These kinds of gray areas are where a broker can come in handy and help get the highest value.
The calculator takes a number of other factors into consideration as well. Things like whether or not you use an accountant for your finances are considered. Your business’ net margin as well as inventory level and number of years in business are factored in as well. Making sure all of this information is accurate in the calculator will help determine the correct value down the line.
It is important to remember that the valuation calculator is only going to be an approximation. It will always be a good idea to meet with a consultant before making any decisions to sell your business. A one on one meeting can determine your situation so much more accurately than an online calculator.
How Many Businesses Has Website Closers Sold?
Website Closers has sold hundreds of businesses over the years. On their website, they list a number of case studies of some of these companies. Some of them are smaller eCommerce retail businesses, while others are multi-million dollar lifestyle brands. Their experience is varied and fairly far reaching.
Website Closers uses analytics to help build a sales plan for your company. To maximize the potential of the sale, they target buyers specifically in your business’ market niche. This is the kind of experience that can only come from a lot of close deals. From scaling growth to projecting margin increases, they can gather the information buyers are looking for.
The marketplace type of listing that they use is convenient for looking at the kinds of businesses that have already been sold. With this massive database, they are able to look at what kinds of listings have performed better than others. This, like so many other things, is invaluable for getting the most out of a listing.
Having the benefit of so many deals closed, the coaches can see whether you are ready to sell right now. Then you can move forward with the confidence that you’re getting the most out of the mediation.
Does Website Closers Offer Deal Financing?
A selling point for using a broker for your company’s sale is that they have relationships with lenders and banks. Plain and simple, this means that your business will be much more likely to sell. That will give you more options for finding the perfect buyer.
If you were to sell your business all on your own, the buyer would have a couple of options. One is that they would have to fund the sale out of their own balance sheet. Most buyers don’t necessarily want to do that when they are purchasing a business that already exists.
The other option they have is that they can deal with a lender on their own. This will require your involvement and add even more to your already full plate. By trying to sell your company yourself, you are entering a complex labyrinth of red tape and bank forms.
Since Website Closers works directly with lenders, the process is streamlined. The buyer can work with the banks on financing and you don’t have to add more paperwork to your desk. By making the transaction easy for both parties, you are likely to end up with a better deal all around.
What Is the Process of Selling a Business With Website Closers?
The first step of selling a business with Website Closers is going to WebsiteClosers.com and using the valuation calculator. This will give you an idea of your company’s value and set up a contact point. The last step of the valuation calculator is entering your contact information.
After that, you will have a consultation. There, you will work with Website Closers’ coaches to go through your business’ value. This process is where the real worth is determined and where the business’ final asking price will be finalized. It is much more detailed than the website’s calculator and will help to get the highest values.
After the consultation, your business will be listed in the marketplace. There, your company’s details will be posted alongside other businesses for sale. This listing is where the expertise of Website Closers comes in handy. The right listing content will attract quality buyers and it is best to take the advice of people with experience.
These detailed processes ensure that your company gets in front of the right buyers. If a buyer likes your business but isn’t attracted to the content of the listing, you could lose the sale. That’s why it’s so important to have coaches who know what buyers are looking for. The numbers can speak for themselves, but it helps to present them professionally.
What Are the Fees Charged by Website Closers to Sell a Business?
There are so many benefits to working with a broker when selling your web-based business. There are, however, also downsides. One of them is that if you sell your business on your own, you net most of the profit. If you use a broker, though, you are going to have to pay some fees for their service. That will usually come in the form of a percentage of the sale.
Most brokers are going to charge you anywhere from 6% to 15% of the sale for their commission. This is a consideration that you are going to have to make in your overall sale plan. If your company is selling for a smaller amount of money, a higher fee might be worth it. If it is a multi-million dollar sale, you might put some more thought put into the broker fee.
There are also benefits to paying the broker fee. Generally, the fee is not paid until the business is sold. This means a few things for you as the seller. The first thing is that the broker is going to be highly motivated to make the sale. If they are not getting paid until you do, they are going to do everything they can.
The other thing is that the broker will be motivated to get you a higher price for your business. This is an added benefit of a percentage model for the broker fees. The higher the final selling price, the higher their commission. This system helps ensure a solid performance on both sides of the sale.
For Website Closers, their fees are not specified on their website. However, we know from dealing with the company that commission percentage is based off of the size of the business being sold. The higher the revenue for the business the higher the fee.