Agreements Archives - Web Equity Show

S04E03: Finding 7 & 8 Figure Deals

November 8, 2018 by Justin Cooke Leave a Comment

Subscribe to our VIP LIST Where 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…

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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

August 16, 2017 by Justin Cooke 1 Comment

Subscribe to our VIP LIST We’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

August 9, 2017 by Justin Cooke 1 Comment

Subscribe to our VIP LIST Negotiating 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

May 17, 2017 by Justin Cooke Leave a Comment

Subscribe to our VIP LIST Not 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!

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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

Featured On The Show:

Web Equity Show S02E07 on Deal Structures for Buyers

S03E05: Required Documentation To Sell Your Online Business

February 23, 2017 by Justin Cooke Leave a Comment

Subscribe to our VIP LIST So 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!

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What You’ll Learn From This Episode:

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

S02E09: Website Migration & Turnover

May 17, 2016 by Justin Cooke Leave a Comment

One of the scariest steps for buyers (and sellers) can be migrating the business from the old owner to the new.

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

Money Transfer
Domain Transfer
Website Transfer
Other Accounts

Second Phase: Inspection Period

Goal 1: Did You Get Everything?
Goal 2: Verify Quality and Metrics

Third Phase: Signing Off

What To Do If Things Go Bad? (Backing Out)

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S02E08: Making Offers And Closing The Deal

May 10, 2016 by Justin Cooke Leave a Comment

Now that we’ve looked at the various types of deal structures you can implement, it’s time to close the deal.

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!

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What You’ll Learn From This Episode:

What’s The Process

Letter of Intent (LOI) Process
Empire Flippers Process
Private Purchase Process

Our Best Tips On Closing The Deal

Find out what the seller REALLY wants!
Get the broker working for YOU! (Insider trick)
Be mindful of the seller’s ego/feelings
Consult your Accountant/CPA about tax benefits
Be SUPER clear about the terms and deal structuring
Make it clear you’re a good fit for the business
Be understanding if seller responds with a touch of hostility
If deal stalls, rely on broker. (Or lawyer / 3rd party)
If you’ve been through several rounds of offers, give the seller a small win to close the deal
Don’t rely too heavily on contracts post-sale

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S02E07: Understanding Deal Structuring

April 26, 2016 by Justin Cooke Leave a Comment

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

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:

Lendvo

S02E06: Due Diligence

April 19, 2016 by Justin Cooke Leave a Comment

If you’ve been following along our buyer’s series in Season 2, this is an episode you don’t want to miss.

In our longest episode to date, Ace and I break down some of the critical issues and steps to take when performing due diligence with website properties.

Now, of course, we can’t cover every single issue that may come up in due diligence, but we do attempt to provide a framework and a specific way to look at deals that will help you separate the good from the bad.

We’ve put together our years of combined experience in reviewing more than a thousand deals into an in-depth review. Hope you enjoy!

One more thing – it’s your support that keeps this show going. If you’ve appreciated what you’ve heard and would like to hear more, 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:

Content Sites

Check Visitor-to-Customer Flow
Sustainability/Scalability

Earnings

Are The Claimed Earnings ONLY Coming From Site For Sale?
Compare Stated Earnings To Bank Account Deposits
Bring In A Professional (Larger Purchases)

The Website / Niche

Is The Content Quality?
Will The Niche Last?
What’s The Site History
What’s The Reputation / Backlinks Situation?

The Seller

Are They Real?
Who Have They Done Business With?

Not-So-Common Scams

Fake leads
Not just the president, also a client
Double (or triple) dipping

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Ep 14 : A CPA’s Take On Buying And Selling Online Businesses

November 10, 2015 by Justin Cooke Leave a Comment

We get questions about the tax implications of buying online businesses all the time.

“Should this be a stock or asset sale?”

“Can I roll my sale into another purchase in a calendar year to avoid taxes?”

“What part of the sale is personal Vs. capital gains?”

We both have experience in buying/selling websites and online businesses, but when it comes to parsing thousands of pages of tax code to find your loophole – that’s not really something we can do!

But there are people who CAN do that for you and today we sit down with one of them…

In this episode, we sit down with CPA Mario Lucibello to dig into the ins, outs, and upside downs of buying, selling, and investing in websites and online businesses. This guy’s a pro and we get into quite a bit.

Not the most exciting subject, but I had so many questions I just had to keep hammering him for the full hour. Sit back, relax, and let’s talk accounting when it comes to our industry.

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Listen To The Full Interview:

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What You’ll Learn From This Episode:

Business Structure + Setup
Due Diligence With Buying Online Businesses
Taxes With Buying/Selling Websites

Featured On The Show:

Mario Lucibello, CPA @ GreenHaus, Riordan & Co, LLP