The market for buying and selling eCommerce businesses is extremely hot right now, with roll up funds like Thras.io, Elevate, and OpenStore raising gobs of money to acquire ecommerce businesses. But what are the mechanics of this -- in valuation, selling, and maximizing the value of a business? In this episode, Chris Shipferling, Managing Partner at investment bank Global Wired Advisors, an investment bank focused on eCommerce and digital businesses. Chris specialty is helping businesses achieve their maximum valuation, and finding the best buyers who will acquire at the maximum valuation possible. In this conversation, Chris explains the fundamentals of the sales process: How businesses are valued What buyers are looking for when purchasing a business (and brand) What the current trends and valuations are in a hot market This is an insightful conversation on what the “end game” of many entrepreneurs is, as they sell their business.
Find Chris at https://globalwiredadvisors.com/
HIGHLIGHTS:
0:35 - A brief overview of how Mergers & Acquisitions work
10:06 - What are the multiples for ecommerce brands today?
13:23 - How do you quantify the value of a brand in an acquisition?
24:26 - What are the main metrics that are reviewed for a valuation?
27:57 - How to minimize risk when going through the acquisition process?
32:03 - What does the short term and long term future look like for ecommerce acquisitions?