When selling an online business, finding the right broker is crucial to ensure a smooth and profitable transaction. Business Exits is a leading brokerage firm specializing in selling online businesses, offering tailored strategies and a proven track record of success. But is it the right choice for you? This comprehensive review explores the pros, cons, services, and success rates of Business Exits to help you decide.
Overview of Business Exits
Business Exits is a business brokerage firm founded in 2013, specializing in selling online businesses with yearly profits ranging from $250,000 to $5 million. Led by industry experts Jock Purtle and Robert Kale, the firm has earned a reputation for its analytical approach and deep understanding of the market.
- Key Clients: Primarily large tech-oriented businesses.
- Leadership: Jock Purtle and Robert Kale bring years of experience in buying, growing, and selling businesses.
- Location: Based in Los Angeles, with clients worldwide.
Business Exits offers two core services:
- Traditional Brokerage: Connecting sellers with buyers through an extensive database.
- Exit Planning Program: A long-term approach that prepares businesses for sale by improving profitability and operational efficiency.
Why Choose Business Exits?
Business Exits stands out for its ability to maximize profits for sellers. Here’s why:
- Extensive Buyer Network: Access to a curated database of premium buyers, including financial and strategic investors.
- High Closure Rate: Boasts a 94% success rate in closing deals.
- Specialized Expertise: Focuses exclusively on digital businesses, ensuring industry-specific knowledge.
- Flexible Sale Strategies: Offers both quick sales and detailed exit planning to meet various business needs.
Types of Businesses Business Exits Sells
Business Exits specializes in selling digital businesses across various industries. Examples include:
- E-commerce Retailers: Online stores with strong sales and established traffic.
- Tech Companies: SaaS providers, app developers, and IT service firms.
- Content Websites: Blogs, affiliate sites, and other media platforms.
The firm targets high-quality businesses with consistent growth and diversified income streams. If your business meets these criteria, Business Exits can help you achieve a premium sale price.
Valuation Process
Business Exits employs a systematic process to determine the value of your business:
- Submit a Valuation Request: Provide details such as tax returns, profit and loss statements, and balance sheets.
- Initial Consultation: Within 24 hours, a team member reviews the information and clarifies any details.
- Valuation Report: Based on factors like net profit, growth trends, traffic, and market competition, Business Exits provides an estimated sale price.
This thorough process ensures businesses are accurately valued, setting realistic expectations for sellers.
Sales Process
Once your business is valued, the sales process involves these steps:
- Agency Agreement: A contract outlining the broker’s role, responsibilities, and fees.
- Prospectus Creation: A detailed report showcasing your business’s strengths and growth potential.
- Marketing: Listings are promoted through Business Exits’ database, advertising channels, and direct outreach to qualified buyers.
- Negotiation: Offers are evaluated, and terms are finalized with the selected buyer.
- Due Diligence: Buyers verify business details before finalizing the sale.
- Escrow and Closing: Funds are securely transferred, and assets are handed over.
- Post-Sale Training: The seller provides transitional support to the buyer.
This structured approach ensures a smooth and efficient sale process.
Pros and Cons of Using Business Exits
Pros
- Comprehensive valuation process with a focus on maximizing profits.
- High success rate (94%) and extensive buyer database.
- Specialization in digital businesses ensures industry expertise.
- Flexible options for quick sales or detailed exit planning.
- Transparent fee structure with no upfront costs.
Cons
- Response times may be inconsistent, as noted in some reviews.
- Services cater primarily to larger businesses, which may limit smaller sellers’ options.
Success Rates
Business Exits has facilitated over $35 million in sales, with an average deal size of $3.1 million. The largest sale recorded was an $8.5 million transaction. Their impressive closure rate and client testimonials highlight their ability to connect sellers with the right buyers.
Fees Charged by Business Exits
Business Exits charges a percentage-based fee only after a successful sale, ensuring their interests align with the seller’s success. Exact percentages depend on the sale price and are outlined in the agency agreement.
How Business Exits Maximizes Sale Value
Business Exits employs several strategies to increase business value before sale:
- Profit Optimization: Identifies cost-cutting opportunities and revenue growth areas.
- Owner Extraction: Reduces reliance on the owner by developing comprehensive operating manuals.
- Diversification: Encourages multiple income and traffic sources to mitigate risks.
- Strategic Buyer Outreach: Targets buyers with synergistic interests to secure higher offers.
Is Business Exits Right for You?
Business Exits is a top choice for online business owners seeking a professional and results-driven broker. With a high success rate, specialized expertise, and a proven track record, they offer a reliable solution for maximizing the value of your business.
While response times may occasionally fall short, their overall performance and dedication to client success outweigh this minor drawback. If you’re ready to sell your online business, Business Exits provides the expertise and resources you need.
