1. Preparing your company for a sale

Before thinking about finding the right buyer, you need to make sure you have the right opportunity. KBS Corporate recognises the selling points buyers will be looking for in the e-commerce industry, and you must optimise these functions in your own company.

The strength of your e-commerce company will be influenced greatly by your website. Do not hesitate to further develop your platform to ensure it is highly functional, easy to navigate and boasts a clean design. It would also be wise to ensure your listed inventory reflects your current offering, delisting any out-of-stock and discontinued products.

Buyers will also be eager to analyse customer data and the volume of traffic your e-commerce company benefits from. Preparing supplementary reports that can be easily produced during negotiations will demonstrate a well-managed, refined company.

2. Get your finances in order

Naturally, your e-commerce company’s financial standing and performance will be scrutinised during any potential sale. Getting your finances in order and preparing the necessary documents will benefit you greatly. Information and reports you should aim to finalise include:

• Up-to-date management and statutory accounts
• Income and cashflow statements
• Balance sheets
• Breakdown of company assets
• Premises and property details

Typically, potential buyers would be looking to see the financial performance of an e-commerce company over the previous three to five years.

3. Organise your customer insights and data

Customer insights and data can accurately demonstrate the success of your e-commerce company. Make sure your current customer list is up to date, removing any duplicate or inactive accounts.

If you can present a strong, reliable customer base, potential buyers may be interested in pursuing the acquisition of your online retail company as a means to enhance their own customer reach and marketing capabilities.

4. Monitor website traffic and sales

With modern analytics, you will be able to showcase the sales generated and traffic received by your e-commerce platform. Interested parties will be looking for growth in these statistics, so it can be wise to temporarily reconsider your business exit strategy if you are observing a decline.

Furthermore, potential buyers will want to know how you market your e-commerce company to improve traffic, whether that is via paid search, social media or other forms of advertising through key channels.

5. Review third-party contracts

Take your time over reviewing relationships with third-party suppliers, especially those you have a contract with. E-commerce companies need to discuss changes to their operations, especially if they are heavily reliant on services provided by external organisations which can impact profitability.

Additionally, review your order fulfilment process and any contracts that are in place to support this. There are various types of order fulfilment, including in-house, outsourcing and dropshipping. Any partners you use to facilitate this must respect arrangements with a new owner.

6. Get a company valuation

It is wise to touch base with a company valuations expert before selling your e-commerce business, allowing you to manage your expectations for a potential transaction.

There are multiple factors which can enhance the value of an e-commerce company, including technological capabilities, customers and traffic, market conditions and financial performance.

7. Hire expert company sales advisers

KBS Corporate has a comprehensive understanding of current activity in the e-commerce company sales market and can advise on how this may affect your valuation.

But our experience is not just limited to helping you approach the market — we have the resources and capabilities to guide you through the entire process until completion. KBS Corporate has a proven track record of assisting e-commerce company owners as they negotiate with buyers and work through an extensive legal and due diligence process.