Selling a website business for some internet entrepreneurs can be a pretty emotional experience. Afterall, they have a lot of time, energy, love and money invested in their "baby".  Consequently, as website brokers who represent the seller, we end up spending a lot of time keeping our client's focused on the end result of a fair and successful deal concluding rather than the bumps and hiccups that are inevitable in the selling process and can be frustrating and stressful.

There is a saying in the business broker community that 5% of our job is being a business broker and 95% is acting as a pschologist!  I can attest to this fact, in degrees, as the journey of selling a business that has been with the owner for many years and has taken a lot of blood sweat and tears to become successful, can be highly emotionally charged. Knowing this, our strategy with our clients is to assist them in getting as prepared as possible for the process both mentally and organizationally.

Organization includes: the financial documents - bank records, tax returns, merchant statements for as many years as possible, advertising records including conversion rates and ROI if available(Google adwords, YPN, etc), vender lists and product costs, accurate inventory levels, customer database records, traffic statistics, keyword positioning in the search engines, contracts with venders or partners etc, promotional and advertising materials, graphics, artwork, list of all equipment and furniture to be included - with depreciated value, other professional support - legal representation, accountant or CPA, list of trademarks and copyrights, and all domain names to be included - where they are registered, website hosting company and all website logins and passwords for website development and any other pertinent detail.  All of this detailed preparation will facilitate a quicker  & cleaner closing process, and if collated early will reduce the stress level when going through due diligence.

Mental preparation includes understanding the actual process of selling a compelling website business opportunity. If the client understands what is involved up front they can mentally prepare to undertake the journey in advance - knowing that the site may sell within 30 days or within 9 months depending on the business strengths and fundaments as well as the asking price. Being prepared to answer a lot of questions and deal with scrutiny that is important for the buyers and their right to ask. Knowing that asking price doesn't alwats equate to selling price and not to get hung up on a specific figure - just know that a fair deal means both buyer and seller are satified and happy. Being flexible and willing to make a deal will insure a deal gets done without bad feelings that can derail a potential sale in the final stages. Educating sellers to understand the market valuation and buyer perceptions will provide them with the knowledge to make a rational selling price decision and agree to an appraisal and asking price range that will lead to a sale.  Understanding the different deal structures that may be potentials such as All Cash, Owner financing, SBA/bank financed loans, future earn-out, or a combination thereof, will avoid undue emotions like fear when negotiations commence and offers are presented. We recommend our clients retain an attorney as well as a CPA or accountant to provide them with a balanced and secure perspective moving forward with any deal - these professionals working along side us generally(not 100%!) assist in easing the seller tensions and anxiety that may arise.

The biggest single factor that will lead to a smooth and relatively stress-free business sale transaction is Preparation. The more prepared in advance the less stress there will be and the more professional the presentation and offer. This ultimately affects buyer perception and trust in the information and usually leads to quicker closings. As the old addage goes - Success is 5% perspiration and 95% preparation. Better that ratio than the opposite during the selling process - 5% preparation leads to 95% perspiration . So - be prepared and Don't Sweat It!!!!

 
David Fairley

President, Website Properties.com