E274: How Due Diligence Helps You Sell Your Ecommerce Business
Just as the title says, this episode is all about helping you get a better sense of how the due diligence process works by talking about a bit about how it was done for a brand we sold – ColorIt.com.
I’m joined by Chris Yates and Brian Diener, from Centurica, a company that helps online business buyers conduct due diligence on prospective acquisitions. They not only handled the due diligence on ColorIt but also served as a go-between for myself and the new owners to ensure that this part of the buying process went as smoothly as possible.
Chris provides a bit more detail about the Centurica through the following:
- What the company does (4:22)
- The process of doing due diligence (5:35)
- Potential costs for the service (7:14)
Brian, who did the actual due diligence on ColorIt, talks about how it was done.
- Verification process (13:17)
- Accuracy of splitting up fees (15:02)
- Checking supplier relationships (16:47)
- How P&Ls are reviewed (19:45)
- What goes into a client report (21:09)
- The results and how we reacted (27:47)
Learn more about Centrica's services from the website or book a free phone consultation.
Get the full picture of what went down with the ColorIt sale when you listen to these episodes.
- E246: Why I Sold ColorIt.com
- E247: Preparing for the ColorIt Sale with Joe Valley – Part 1
- E248: Preparing for the ColorIt Sale with Joe Valley – Part 2
- E249: How Our Filipino Team Reacted to the ColorIt Sale
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If you have any questions or comments, feel free to leave them below. Happy selling!