Time To Sell Some Online Business Assets?

By | Internet Lawyer | No Comments

Like a brick-and-mortar company, an online business accumulates assets that it rarely or never uses.

If you’ve been online for more than a couple of years, chances are your e-commerce company is sitting on these types of assets.

Now’s a good time to take an inventory of what your Internet business owns and decide what you don’t and won’t need in the future.

Of course, these assets can be sold piecemeal (e.g., domain name registrations).

However, you’ll often discover a part of your company can that be spun off and sold as its own microbusiness. Sold together as a revenue generator, you can typically get more from a single buyer than selling off the parts separately to multiple purchasers.

Need help? Set up a phone consultation with Internet Business Lawyer Mike Young.

Are You Ready to Sell Your Internet Business?

By | Internet Lawyer, Website Lawyer | No Comments

sell your internet businessReady to sell your Internet business? Internet Lawyer Mike Young helps entrepreneurs sell their e-commerce companies for a fair price while reducing the legal risks (including nonpayment).

Here are some of the common ways that Mike can help you sell your online venture.

Determine your desired outcome

Although you may have a sales price in mind, there’s a lot more that goes into selling an e-commerce company than simply transferring assets or equity in exchange for payment.

  • Do you want to be paid a lump sum or are you willing to accept installments?
  • Will you provide full or partial seller financing for the sale?
  • Do you intend to stay on as a consultant or employee post-sale? If so, under what terms?

Related Article: 7 Keys To Picking The Right Internet Lawyer For Your Business

Mike will use his experience as an Internet business attorney to help you structure a deal that’s right for the goals you want to achieve.

Pre-sale website legal compliance review

A company website that violates the law can prevent a sale or seriously devalue an online business. Mike can perform a Professional Website Legal Review to address legal compliance issues before you try to sell your ecommerce company so that you can maximize the profit you make.

Revise prospective buyer’s letter of intent (LOI)

Accepting a potential buyer’s letter of intent (LOI) at face value is rarely a good idea for any seller. Mike will review and recommend revisions to the offer contained in the LOI in order to protect you from frivolous prospects or efforts by competitors to sabotage your Internet company using the due diligence process to improperly learn confidential information to misuse to compete against you.

Handle due diligence inquiries from prospective buyers

Working with your accountant and your Internet business broker (if you have one), Mike will help field questions from your company’s potential purchaser during the due diligence process. This enables you to focus on your business operations while providing the prospect with the information needed to bring the deal to the virtual closing table.

Protect you with the right legal documents

Ideally, you’ll want Mike to draft the ecommerce legal agreements that will be used to make the deal happen because he has the experience and understands ecommerce. By having Mike prepare the docs, you’ll get more legal protections than would be provided in documents drafted by the buyer’s attorney.

Related Article: 3 Things You Must Do To Sell An Internet Business Quickly

If the buyer’s legal counsel prepares the documents for closing the deal, you’re likely to face two significant problems.

  1. Most attorneys lack the experience to properly draft the legal documents needed to complete the sale of an Internet business. Mike can identify the gaping holes in these documents and fill them with language to protect you.
  2. Documents written by the buyer’s legal counsel are likely to heavily favor the purchaser to your disadvantage as the seller. Mike can review these docs and provide revisions to make the documents fair to you rather than being one-sided in favor of the buyer.

Help you get paid when you sell your Internet business

It’s not enough to sell an Internet venture on paper. You’re going to want to get paid.

Mike knows how to structure Internet company sales in such a way as to minimize your risk of nonpayment, both at closing and for any future payments due if financing terms are provided.

What’s the next step in getting Mike to help you sell an online venture?

When you’re ready to sell your Internet business, the first step is to set up a telephone consultation with Mike to get the ball rolling.

Sell An Internet Business: How To Avoid 3 Costly Mistakes

By | Internet Lawyer, Website Lawyer, Website Legal Documents | No Comments

sell an internet businessIf you’re ready to sell an Internet business, you need to map out a game plan for doing so in order to maximize the amount you’ll get for the business.

Here are three expensive mistakes to avoid when you decide to list the company for sale.

Mistake #1 – Comparing Your Internet Business to a Publicly Traded Company When Selling It

It would be nice if every online entrepreneur could sell their Internet companies based on the ridiculously high price/earnings ratios one sees for large publicly traded ecommerce ventures in the stock market. However, in the real world, a privately held business entity will rarely sell at a multiple of hundreds or thousands of times its earnings.

Working with your selling team (Internet lawyer, accountant, and business broker), you’ll be able to come up with a fair price tag when you decide to sell an Internet business.

Related Article – 7 Keys To Picking The Right Internet Lawyer For Your Business

Mistake #2 – Insisting the Buyer Pay Twice When You Sell An Internet Business

Every entrepreneur has future plans for growing their companies. However, if you decide to sell your e-commerce venture before implementing these plans, it’s unrealistic to demand a purchaser pay twice for them.

Few prospective buyers will agree to pay you first for something that doesn’t exist yet, and pay a second time to implement those plans after acquiring your company. They want to buy based on what the company is worth today instead of rosy projections of future value that don’t exist yet.

Mistake #3 – Accepting Too Much of the Sales Price for Your Internet Company on the Back End

If a prospective purchaser wants to pay you a portion of the sales price on the back end through installments or an earnout, you should prepare for the worst by assuming that some or all of those payments will not be made because circumstances often change after the legal documents are signed and the buyer is running the company.

Look at the amount of money that’s being brought to the table to pay you at closing. If you’re happy with that amount, you may want to go forward with the deal and consider the promise of future payments a pleasant surprise if they happen.

These are three of the most common mistakes entrepreneurs make when selling their online business. Your e-company’s Internet lawyer can help you avoid other mistakes during the selling process so that you can get what you want from the deal and move on with your life after the sale is complete.

If you don’t have an attorney yet, you may want to schedule a telephone consultation with Internet Lawyer Mike Young to discuss your options for when you sell an Internet business.