Selling your online business can be a daunting task, but with a brokerage like Dealflow, the process becomes more manageable. Founded in 2013, Dealflow initially worked exclusively with Flippa but has since established itself as a standalone brokerage specializing in small to midsize web-based businesses. This review explores the pros and cons of working with Dealflow, along with insights into their processes and services.
Overview of Dealflow
Selling a business involves significant time and effort, especially for small to midsize companies worth under $1 million. Dealflow specializes in helping web-based businesses—including e-commerce stores, SaaS platforms, and content sites—navigate the complexities of ownership transfer. Their experienced team of Mergers & Acquisitions brokers has facilitated hundreds of sales, offering sellers a reliable partner in this critical transition.
Key Features:
- Focus on small to midsize web-based businesses.
- Specialized buyer pool for targeted sales.
- Expert guidance through valuation, marketing, and negotiation.
Types of Businesses Dealflow Works With
Dealflow caters to a range of online business types, ensuring a tailored approach for each seller:
E-commerce Businesses
Online stores of all sizes can benefit from Dealflow’s expertise. Their buyer pool is well-versed in e-commerce, ensuring a smooth transition.
SaaS Platforms
For SaaS companies, Dealflow’s brokers identify buyers with a technical understanding of the industry, preserving your business’s continuity.
Content Sites
Blogs, online magazines, and other content-driven platforms fit seamlessly into Dealflow’s portfolio. Their experience ensures these businesses attract the right buyers.
Niche Online Services
If your business operates exclusively online, Dealflow’s broad buyer network ensures you’ll find the right match.
Dealflow’s Valuation Process
The valuation process is the cornerstone of a successful business sale. Here’s what you can expect:
- Document Submission: Sellers provide essential financial documents, including a Profit and Loss Statement and an Owner Questionnaire.
- Comprehensive Assessment: Dealflow’s brokers analyze your business’s financials and market positioning.
- Collaboration: Sellers have input during the valuation process, ensuring transparency and trust.
- Quick Turnaround: Valuations are typically completed within one business day.
Once the valuation is complete and satisfactory, sellers enter an Exclusive Brokerage Agreement (EBA) with Dealflow for 90 days, during which the sale is actively managed.
Sales Process
Dealflow’s sales process is designed to maximize your business’s value and ensure a successful transition:
- Buyer Sourcing: Dealflow maintains a tailored pool of buyers, actively reaching out to those who match your business’s profile.
- Marketing Package: Their in-house team creates professional marketing materials to attract high-value buyers.
- Sales Strategy: A detailed plan, including pricing and promotional activities, is developed and approved by the seller.
- Offers and Negotiations: Sellers begin receiving offers quickly, thanks to Dealflow’s proactive approach.
- Escrow and Finalization: Funds are secured in escrow, ensuring a safe and smooth transaction.
Success Rates
Dealflow’s high success rate is attributed to:
- Rigorous Vetting: Both buyers and sellers undergo thorough qualification processes to prevent scams and ensure serious offers.
- Active Marketing: Dealflow combines outbound and inbound brokerage strategies, increasing the likelihood of finding a suitable buyer.
- Tailored Approach: By understanding each business’s unique needs, Dealflow ensures targeted and effective marketing.
Fees Charged by Dealflow
Dealflow charges a typical brokerage fee of 10-15%, payable only upon a successful sale. Additional costs include:
- Marketing Fees: These are included in their comprehensive service.
- Escrow Fees: Ensures secure handling of sale funds.
While these fees may seem significant, they are offset by the expertise and buyer network Dealflow provides, often leading to higher sale prices.
Pros and Cons of Using Dealflow
Pros
- Large Buyer Pool: Access to an extensive network of pre-vetted buyers increases the likelihood of a successful sale.
- Expert Guidance: Professional marketing and sales strategies ensure a smooth transaction.
- Comprehensive Services: From valuation to final sale, Dealflow handles the complexities of selling your business.
Cons
- Exclusive Brokerage Agreement: The 90-day commitment may feel restrictive to some sellers.
- Variable Experience: Outcomes can vary depending on the individual broker assigned to your case.
- Broker-Controlled Sales: Sellers must trust their broker’s decisions, which may not always align with their preferences.
Is Dealflow a Good Option for You?
Dealflow stands out in the crowded field of online business brokers due to its proactive approach and specialized services. While the 90-day EBA and broker variability may raise concerns, the advantages of using Dealflow outweigh the drawbacks. Their dual-pronged marketing strategy, experienced team, and extensive buyer pool make them a top choice for selling your online business.
If you’re considering selling your business, starting with a valuation from Dealflow is a low-risk, high-reward first step. With their support, you can focus on your next venture while they handle the complexities of the sale.
