Sell Your Ecommerce Brand in 6 weeks
GETTING TO KNOW EACH OTHER
In a first call we would like to tell you more about Powerhouse91. Who we are, how we operate, how we think, how our process works. We know you are busy running your own business, so we keep these meetings highly efficient and we will never show up late and keep you waiting - that’s our promise to you.
We also like to learn a bit more about yourself and your business. You should expect questions like “Why did you start this business?” and “How much profit did you generate over the last 12 months?”. We understand that some questions are too sensitive and we will not press you for answers if you are uncomfortable.
ANALYSIS & DEEP DIVE
We typically need your monthly sales data as a first step. Additionally, we will ask you to provide us with ASIN-level product costs, and your last freight invoices. We need this information to get the complete picture of the profitability of your business. Again, if the information is too sensitive to share, we can discuss alternative ways.
WE MAKE AN OFFER
Based on the information you have provided and our analyses we are able to present you with a Letter of Intent (LOI), which lays down our offer to you. In this offer, we present you with various terms underlying the offer, including (i) a valuation/purchase price, (ii) payment terms, (iii) a timeline, (iv) additional due diligence requests and (v) next steps.
DUE DILIGENCE & DOCUMENTATION
Should you be happy with the offer and accept it, we enter a “Due Diligence” phase, which means we take great care to fully understand your business. We might ask for supplier agreements, employee contracts (if any), audited financial statements, trademarks, rental/lease agreements, invoices and other documents.
In parallel, we start drafting the Purchase Agreements, which dictate the terms and conditions under which we buy your business (or part thereof). It’s important to get your legal advisor/consultant involved at this point.
CLOSING AND WIRING FUNDS TO YOU
Usually it takes us 2 additional weeks until all the documents are signed and we can close the deal. After clearing everything you can expect the money in your bank account within an additional week. Now you are ready for your next challenge!