Are you ready to buy or sell an ecommerce business?
If so, there are a few very important questions to ask. Do you have the business acumen to analyze a profit and loss statement for an online business? Can you confidently say that the sources of revenue will continue when the original owner leaves? Do you trust the seller on how many hours it takes to run the business?
If you answered “no” to any of these questions, then you should seriously consider an independent ecommerce business valuation. Mike and Grant, operators of EcomCrew, have decades of experience operating online businesses and specialize in buying, selling and turning around ecommerce businesses. In fact, we look at listings every week and know that the majority of them are over-valued!
Why You Shouldn’t Use a Broker for a Valuation
A broker is not a truly third-party to your needs. A broker is paid on commission and has a vested interest in either selling your business or assisting you in purchasing. This means the broker is paid upon a successful transaction, which is not aligned with your interests. At EcomCrew, we are completely independent of your interests and no reason to give you a bloated or depressed valuation.
The other reason brokers may not be the best source of information is that brokers read what the market will dictate. Brokers don’t necessarily know the exact ins and outs of running an ecommerce business or the volatility involved with search engines and third-party selling channels like Amazon and eBay.
In a short amount of time, we can identify most of the major pitfalls using our combined years of experience as ecommerce operators.
Top Reasons to Have a Third-Party Ecommerce Valuation for Buyers
- Ecommerce does not play according to the same rules as brick and mortar
- Assess hidden risks, especially at it relates to customer acquisition and source of revenue
- Assist with a true “boots on the ground” view of ecommerce operations and true operational requirements
- Expense audit to understand what overhead costs could potentially be saved
- Identify irregularities in accounting and suspicious revenue streams
- Perform an SEO audit to spot red flags that could signal a high risk investment
- Analyze technology platforms and tools and provide feedback on upgrade, customization or migration costs
- Evaluate potential areas of opportunities for other selling channels (Amazon, eBay, Etsy, etc)
- Determine if YOU are capable of stepping in as operations leader and if not, the cost of hiring staff
- We have no skin in the game and we will tell you if we think this business is a bad investment
Why Sellers Also Need Valuations
- If you’re not ready to sell, but are curious what your business is worth, we can provide valuable insight and feedback.
- Not getting leads? A third party valuation will give you an honest assessment if your pricing is too high
- Need to sell fast, but have wary buyers? We will provide an official “EcomCrew eValuation” certificate on our valuation of your business
- Broker talking you down on price? We have no financial interest in the sale of your business and can affirm or reject their opinion.
- Multipliers are outdated. Ecommerce is far beyond a simple 2x-4x multiple and settling for 3x “because everyone else does” is not always the best strategy.
Our Valuation Pricing
EcomCrew offers a simple, flat pricing structure of $599 for a 90 minute phone valuation with both Mike and Grant. Each additional hour is $399. On request, we will provide an official EcomCrew eValuation Certificate, which provides our expert opinion on the value of your company. Prior to the call, we will ask you to forward us all P&L statements, analytics access and other relevant documents.
Please email Grant at [email protected] to schedule a valuation or consultation.
Special Offer for Sellers
If you are selling your ecommerce business and are looking for a valuation, we are willing to provide a free valuation service in exchange for posting our valuation results publicly. You will have the option of having us remove your website domain and URL from our analysis, though we retain the right to use screenshots of your website as well as any other business data in our post.
To qualify for this service, we will require submission of complete P&L statements, access to analytics, PPC, third-party seller statements and other information to make a full valuation and analysis.
A Little About Us
EcomCrew is Mike Jackness and Grant Chen. Mike was formerly the Director of IT for a technology firm in Washington DC, started an eBay business on the side, then eventually switched full time. He pivoted to the affiliate industry, where he built Protos Marketing, a $20MM company with 70 employees in multiple countries. Mike became known in the domaining industry, when he bought and sold WebSiteHosting.com for a $225k profit in 5 months. Treadmill.com, a joint project with Mike and Grant, grew to over $800k in sales the first 12 months before being sold. Mike’s latest project is IceWraps.com, which was acquired as a failing business, but is set to exceed the performance of Treadmill.com.
Grant Chen was one of the top three affiliates world-wide in the gaming space for multiple years and recognized for his SEO talents. Grant and Mike joined forces to create Protos Marketing, where Grant was CTO and in charge of marketing and development. Currently, Grant is operating CuttingBoard.com and ChoppingBlocks.com, as well as incubating SaaS start-ups. Offline, Grant is a co-owner and president of a franchise operations group, operating two B&M locations with revenues over $1MM.
You can read more about our qualifications here.