Web Equity Show

WES S04E07: Operating Structures

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Subscribe to our VIP LISTIn this episode, we discuss the various operating structures we’ve dealt with during our experience running online businesses and portfolios of businesses.

Pairing operators and investors can be an interesting part of the industry and ideally it’s a profitable venture for both. However, it doesn’t always work out that way, so we’ll discuss the ways it works and the ways it doesn’t.

Listen in as we explain four operating structures and examine each of their advantages and disadvantages.

Digging the show? Please do stop by iTunes and give us a review when you get a chance – we’d really appreciate it!

Alright, let’s dig in…

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What You’ll Learn From This Episode:

  • Investor/Operator Partnership
  • Multiple Investors + Operator
  • Investor Loans
  • Private Equity Fund

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S04E04: Due Diligence Tips

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Subscribe to our VIP LISTDue diligence is a tricky beast.

It’s easy to pick up the basics but can take years to master.

We covered some of our thoughts on due diligence on this previous episode. If you haven’t listened to it, I’d highly suggest giving it a listen and coming back for this one.

In this episode, we wanted to cover some due diligence tips that were more relevant for larger businesses and portfolios that you may be looking to acquire.

While we look at it from a buyer’s perspective, it’s worth a listen if you’re selling as well to get some sense of what buyers might be looking for.

We’ve had some great iTunes reviews lately! Make sure to stop by iTunes and give us a review when you get a chance – we’d really appreciate it!

Alright, let’s dig in…

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What You’ll Learn From This Episode:

We’re going to cover the advantages and disadvantages to each of these?

  • Stay Organized
  • Pre-Select Your Criteria
  • Initial Pass/Fail Test
  • Industry/Niche Sustainability
  • Review The Team
  • Review The Process
  • Buyer/Seller Call(s)

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S04E03: Finding 7 & 8 Figure Deals

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Subscribe to our VIP LISTWhere can you go to find quality 7-8 figure deals?

You’ll find some 7-figure deals with the brokers, yes, but is that the ONLY place to source these deals?

Nope. In this episode we’ll look at some of the online and offline places you can look to find these gems and we’ll cover the advantages and disadvantages of each.

Please make sure to stop by iTunes and leave us a review! Your support helps keeps the show alive!

Alright, let’s dig in…

Listen To The Full Interview:

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What You’ll Learn From This Episode:

We’re going to cover the advantages and disadvantages to each of these?

  • Brokers
  • Professional Network
  • Industry Leaders In Niche Industries
  • Tier 2 Competitors in mid-sized industries
  • PE Groups and IB’s

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S03E10: Seller Final Steps

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Subscribe to our VIP LISTWe’re SOOO close…now let’s wrap this deal up!

In this episode, we look at some of the final steps you’ll need to take to close the deal and then look at both post-sale support and some next steps you can take after an exit.

 

Many sellers start spending the cash before it’s even hit their bank account, but that’s a REALLY bad idea. The deal isn’t done until you’ve got the money in the bank, so you’ll want to be careful all the way through the process.

So…what’s next? We’ll look at some of the smart-money moves you can make that allow you to celebrate the sale, but also put that money back to work for you.

This is the LAST episode of Season 3 and wraps up our Seller Series. We hope you enjoyed it!

Please make sure to stop by iTunes and leave us a review! Your support helps keeps us going.

That’s it for now, but we’ll plan to have an entirely new season starting later this year. We’ll shoot you an email when it’s on again, so make sure to sign up for our email list!

Alright, now check out the show:

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What You’ll Learn From This Episode:

  • CLOSE THE DEAL!
  • Continue To Meet Agreed Obligations With Business Buyer
  • Celebrate…But Not TOO Much!
  • Consider A Break To Clear Your Head
  • Start Your Next Project
  • Put That Money To Work For You

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S03E09: Deal Negotiations

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Subscribe to our VIP LISTNegotiating deals is kind of like driving cars.

It’s easy to point out others that are bad at it, but nobody think they’re bad at it themselves!

In this episode, we dig into some of the finer points on negotiating a deal from a seller’s point of view. We look at some of the Do’s and Don’ts when it comes to working with buyers, brokers, and interested parties.

We’ll walk you through the process of receiving the first offer to coming to an agreement that will ultimately allow you to sell your business.

This can be a very exciting (and nerve-wracking) step in the process — especially if you’re a first-time seller.

We’ll help demystify deal negotiations for you in this episode.

Like the show? Please stop by iTunes and leave us a review! We’ll give you a shout on the podcast and buy you a beer next time we get to meet you in person!

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What You’ll Learn From This Episode:

  • DON’T take it personal
  • DO stay open to “creative” offers
  • DON’T make promises you can’t keep
  • DO keep your options open with other potential buyers (until the last minute)
  • DON’T hide anything or ignore points made by the potential buyer
  • DO find out as much about interested buyers as you can
  • DON’T think the broker is ALWAYS aligned with your interests
  • DO trust your broker to negotiate the deal

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S03E08: Deal Structuring For Sellers

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Subscribe to our VIP LISTNot all deal structures are the same…

In Season 2, we published an episode to look at how buyers could use deal structuring to their advantage.

Well – it’s time to do the same thing again from a seller’s perspective!

These are fun episodes for us. We love to work and massage deals to see how we can make them beneficial for both parties.

Most of this comes down to really understanding where the other party is coming from and looking for opportunities to meet their needs and extend your own interests to get the deal done.

We definitely had fun recording this one – we hope you like it!

 

Are you digging the show? Please stop by iTunes and leave us a review! We’ll give you a mention on the show and we’d love to hear your feedback!

Listen To The Full Interview:

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What You’ll Learn From This Episode:

  •  Seller Financing
  • Earn-Outs
  • Balloon Loans
  • In-perpetuity payments
  • Outside financing
  • Seller Retained Equity
  • Investor/Sweat-Equity Partnership

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S03E05: Required Documentation To Sell Your Online Business

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Subscribe to our VIP LISTSo you’re looking to sell your online business and it’s getting down to the wire.

You started the business off the right way, maximized profits, and are looking to list your business for sale.

What documentation is required to actually sell the business?

That’s the question we’re tackling in today’s episode.

We’ll look at the earnings data you’ll need to collect along with the traffic data (if applicable), but we’ll also touch on the required documentation of processes and staff a buyer will be looking for in a purchase as well.

I’ll admit – this isn’t the most exciting topic and it can be frustrating to put all of this together. Still, it’s important to remember that you’re competing for a buyer/investor’s time and there are other deals out there. Putting all of your information together in an easily-reviewed, digestible way will help set you apart from the pack.

Are you a regular Web Equity Show listener? Please make sure to give us a review on iTunes! We’ll give you a mention on the show and we’d really appreciate the feedback!

Listen To The Full Interview:

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What You’ll Learn From This Episode:

  • Importance Of Documentation
  • Financial Documentation
  • Traffic/Analytics Documentation
  • Operational/Process Documentation
  • Other Documentation

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S02E09: Website Migration & Turnover

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One of the scariest steps for buyers (and sellers) can be migrating the business from the old owner to the new.
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What if you make a mistake and lose traffic/rankings/earnings? What if you put yourself at risk and end up getting scammed?

In this episode, Ace and I sit down to look at the various steps involved with migrating an online business from the seller to the buyer. We cover issues from transferring the money, domain, and assets to verifying you actually received what you purchased. We even take a look at the horrible situations where a buyer might be forced to back out of the deal.

If you’re looking to make a purchase and wondering about the steps and process in the final stages, this is the episode for you.

Digging this podcast? Please stop by iTunes and leave us a review! We love to read the comments and will give you a shout on a future episode!

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What You’ll Learn From This Episode:

  • First Phase: Transfer Period
  1. Money Transfer
  2. Domain Transfer
  3. Website Transfer
  4. Other Accounts
  • Second Phase: Inspection Period
  1. Goal 1: Did You Get Everything?
  2. Goal 2: Verify Quality and Metrics
  • Third Phase: Signing Off
  1. What To Do If Things Go Bad? (Backing Out)

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S02E08: Making Offers And Closing The Deal

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Now that we’ve looked at the various types of deal structures you can implement, it’s time to close the deal.
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Nervous? You don’t have to be! In this episode we walk you through the tricks and tactics you can use to come to a win-win agreement that will work for both you and the seller.

Whether you’re using a broker or working out a deal directly with the seller, we’ll cover the various processes so you can feel confident heading into the deal and all the way through the process.

This can be one of the most exciting (or costly) periods in the buying process. Your next moves will determine whether you walk away with a steal…or empty-handed.

Do you like the show? Please stop by iTunes and leave us a review! We love to read the feedback and will give you a shout on an upcoming episode!

Listen To The Full Interview:

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What You’ll Learn From This Episode:

  • What’s The Process
  1. Letter of Intent (LOI) Process
  2. Empire Flippers Process
  3. Private Purchase Process
  • Our Best Tips On Closing The Deal
  1. Find out what the seller REALLY wants!
  2. Get the broker working for YOU! (Insider trick)
  3. Be mindful of the seller’s ego/feelings
  4. Consult your Accountant/CPA about tax benefits
  5. Be SUPER clear about the terms and deal structuring
  6. Make it clear you’re a good fit for the business
  7. Be understanding if seller responds with a touch of hostility
  8. If deal stalls, rely on broker. (Or lawyer / 3rd party)
  9. If you’ve been through several rounds of offers, give the seller a small win to close the deal
  10. Don’t rely too heavily on contracts post-sale

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S02E07: Understanding Deal Structuring

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Understanding the various ways to structure a deal can be a critical piece to actually getting the deal closed.Subscribe to our VIP LIST

While many newbie buyers can get stuck in negotiations, a pro understands how to leverage different deal structures to get the outcome they really want.

Once you get to the meat of what the seller’s really looking for out of the deal, you can structure the deal around their wants/needs and put it in terms that are to your benefit.

In this episode, Ace and I dig into the various types of deal structures, explain how they work, and look at specific examples where they might work best to get the deal done with a seller.

Some of these are well-known (i.e. Seller Financing), but when you use these deal structures in combination (A time-based earn out with in-perpetuity payments, for example) they can get quite complicated.

Our goal is to break each of the deal structures down to better help you understand how you can use them in a negotiation/offer.

For us, this is the fun stuff. Creative deal structuring and finding win-win offers is breathing life into deal deals and can make everyone a ton of money.

Are you digging the podcast? Please stop by iTunes and leave us a review! We love to read the feedback and will give you a shout on an upcoming show!

Listen To The Full Interview:

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What You’ll Learn From This Episode:

  • Seller Financing
  • Earn-Outs
  • Balloon Loan
  • In-perpetuity payments
  • Outside Financing
  • Seller Retained Equity
  • Investor/Sweat-Equity Partnership

Featured On The Show:

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