E274: How Due Diligence Helps You Sell Your Ecommerce BusinessAugust 12, 2019 in Ecom-Crew-Podcast
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
Finally, if you enjoyed listening and think this episode has been useful to you, please take a moment to leave us a review on iTunes.
If you have any questions or comments, feel free to leave them below. Happy selling!
Michael started his first business when he was 18 and is a serial entrepreneur. He got his start in the online world way back in 2004 as an affiliate marketer. From there he grew as an SEO expert and has transitioned into ecommerce, running several sites that bring in a total of 7-figures of revenue each year.