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How To Sell An Internet Business

By Business Law Book, Internet Lawyer
how to sell an internet business by internet lawyer mike young

The second edition of “How To Sell An Internet Business” by Internet Lawyer Mike Young has just been published. It’s part of the Quick Legal Guides series for small business owners and other entrepreneurs.

How This Guide Helps You

When you invest in this business legal guide, you’ll…

  • Get a road map of the sales process for online companies
  • Discover the 3 key players you’ll want to have as part of your sales team
  • Find out how to price your Internet business so that it will sell quickly
  • Identify the 2 types of sales and which one works best for you
  • Know how to prescreen prospective buyer’s to save you time
  • Understand how to review an offer to purchase
  • Be able to respond to the buyer’s due diligence requests
  • Discover how to get paid for your time if a deal falls apart
  • Understand the closing process
  • Find out how to handle post-closing tasks

How To Sell An Internet Business also contains a Quick Start Checklist so you can begin the sales process right away.

At the end of the guide, there’s also a Resources section to help you get what you want fast.

Where Can You Get How To Sell An Internet Business?

This business law book is available at Amazon.com in print as a paperback and in Kindle electronic format. Claim your copy today.

Books for Website Owners – October 22, 2015

By Internet Lawyer

Title: How to Sell an Internet Business (10-Minute Legal Guide Series)

Author: Mike Young, Esq.

Reason to Read:

As explained in the book, you can protect yourself when selling your Internet business by following a few simple steps. This guide helps you create a road map for maximizing your profit while reducing your risks when you sell a privately held Internet business. One of the 10-Minute Legal Guide series, you’ll be able to read the key parts of the book in about 10 minutes and know what it takes to quickly sell an Internet company the right way.

Key Quote:

“Determining the true value of your company is an art. As a privately held company, there isn’t a public market of traded shares to look at for even guesstimating what your business is worth. What you consider important about your venture may be very different than the primary reason a prospective purchaser wants to own your business.”

Are You Ready to Sell Your Internet Business?

By Internet Lawyer, Website Lawyer

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: 5 Expensive Mistakes To Avoid

By Internet Lawyer, Website Lawyer, Website Legal Documents

sell an internet businessAre you ready to sell an Internet business? Here are five common mistakes entrepreneurs make that you can dodge with a little advance preparation.

Mistake #1 – Failing to identify what you want

The day after your ecommerce company is sold, what are you looking to do with the next stage of your life?

Some sellers want to walk away and never look back. Others want to retain a role with the company they’ve just sold – as a consultant, an employee, or an informal mentor to the buyer.

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

If you want to stay involved with the company, how long do you plan to stay? 60 days? A year?

Answering these questions will help you structure your offer for sale so that there’s a good fit with the ultimate purchaser.

Mistake # 2 – Working for your earnout

Although it’s common for some sellers to stay on as consultants or employees for a period of time to ensure a smooth transition for the buyer, that’s different than an earnout where part of the compensation paid for your business is contingent upon future events, such as the company achieving certain post-sale milestones.

Too often, sellers will commit themselves to working for the company for one to two years without any additional compensation than the earnout.

In essence, they’ve deducted the amount of the earnout from the sale price and are working for that amount of compensation as employees or consultants for the period of time.

While that’s typically a good deal for the purchaser, it rarely makes sense for the seller when one takes into account the labor involved and lost opportunity costs.

Mistake #3 – Failing to prepare your Internet business for sale

Most ecommerce companies simply aren’t ready to be sold because their owners haven’t taken steps necessary for someone to buy.

If you have key employees and suppliers, do you have written agreements in place that ensure they remain in place if your business is sold?

Have you put in place the right legal documents to ensure you’re not violating intellectual property, spam, and privacy laws by transferring client, website visitor, and email list subscriber information to a third party?

If a letter of intent (LOI) was signed tomorrow, would you be able to provide the prospective buyer with the financial and tax information needed during the due diligence period?

Mistake #4 – Unsecured seller financing

Like the sale of brick-and-mortar companies in the offline world, sellers of Internet businesses may choose to finance part of the deal to make it happen.

However, it’s important to secure this part of the sales price with some collateral from the purchaser. Otherwise, you should assume that at some point the buyer will stop paying and it will not be financially profitable for you to pursue legal remedies for the breach when you take into account legal fees, value of your time, and the likelihood the purchaser will be unable to pay if you win in court.

Mistake #5 – Using the wrong professionals to sell an Internet business

It’s easy to find business brokers, attorneys, and accountants who can help you sell a brick-and-mortar venture. However, few of these professionals have the knowledge or experience to help you sell an Internet business without screwing up the deal.

Don’t be a guinea pig. Be sure you retain an experienced Internet lawyer and other professionals who understand Internet business and know what it takes to sell your company on your terms.

3 Things You Must Do To Sell Your Internet Business Quickly

By Internet Lawyer, Website Lawyer, Website Legal Documents

sell your internet business

If you’ve decided to sell your Internet business, it’s important to follow proven methods for quickly doing so. Here are three steps to speed up finding the right buyer for your e-company.

1. Know The Real Value

Your privately held Internet business is not Google or Facebook. This means there isn’t a public traded stock price to use to value your company.

Do your research to determine what your company is worth, what you’d like to get from the sale, and what’s your bottom line (the least amount you’ll accept).

Related Article: Sell Your Internet Company – 5 Expensive Mistakes To Avoid

You should also decide in advance if you’ll be willing to provide seller financing for some of the sales price.

By preparing before you list the Internet company for sale, you’ll make it much easier on yourself and prospective buyers to reach a deal or quickly reject an offer that doesn’t meet your needs.

2. Prequalify Prospective Buyers

The Web has many get-rich-quick types who will be interested in buying your venture even though they have no realistic means of doing so, i.e. they’re broke and no one will loan them the funds to purchase your e-commerce company.

To avoid wasting your time dealing with these types, you may wish to prequalify prospective buyers by making sure they have the financial means to purchase an Internet company. One method of doing this is to negotiate only with accredited investors who meet certain net worth requirements (the amount varies by country).

3. Retain an Experienced Team of Professionals to Sell Your Internet Business

If you’ve never sold an Internet company before, chances are you’ll want to speed up the process by retaining an experienced Internet business broker, Internet business attorney, and a tax professional (e.g. C.P.A.) who understands e-commerce.

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

Your team will be able to put your business before prospective qualified purchasers plus negotiate and structure the deal in a way that reduces your tax and other liabilities in the process. The amount you invest in their professional services is frequently exceeded by how much they benefit you in getting your Internet business sold quickly and for a fair price.

So how do you get started? You’ll want to schedule a telephone consultation with Internet Lawyer Mike Young to map out a plan to sell your Internet business.