Web Equity Show

S02E06: Due Diligence

by Leave a Comment

Subscribe to our VIP LIST

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:

Podcast: Play in new window | Download

What You’ll Learn From This Episode:

  • Content Sites
  1. Check Visitor-to-Customer Flow
  2. Sustainability/Scalability
  • Earnings
  1. Are The Claimed Earnings ONLY Coming From Site For Sale?
  2. Compare Stated Earnings To Bank Account Deposits
  3. Bring In A Professional (Larger Purchases)
  • The Website / Niche
  1. Is The Content Quality?
  2. Will The Niche Last?
  3. What’s The Site History
  4. What’s The Reputation / Backlinks Situation?
  • The Seller
  1. Are They Real?
  2. Who Have They Done Business With?
  • Not-So-Common Scams
  1. Fake leads
  2. Not just the president, also a client
  3. Double (or triple) dipping

Featured On The Show:

itunes sidebar subscribeStitcher-Subscribe-Button

 

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

by Leave a Comment

Subscribe to our VIP LIST

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.

Digging the Web Equity Show? Please leave us a review on iTunes. We’d really appreciate it!

Listen To The Full Interview:

Podcast: Play in new window | Download

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:

itunes sidebar subscribeStitcher-Subscribe-Button

 

 

Ep #6: Top 7 Last Minute Deal Killers

by 1 Comment

Subscribe to our VIP LISTLosing a deal can be a gut-wrenching experience you’ll want to avoid at all costs.

Getting deep in the process only to have the deal fall through last minute is a huge waste of time, effort, and energy. The emotional swings can make it tough to get back on the horse.

In this episode, Ace and I want to give you a run through of the top 7 deal killers we’ve run across and share some of our personal experiences in losing deals on both the buy and sell side. We’ll look at some of the personality conflicts we’ve run up against, what happens when a change in earnings/traffic happens mid-closing, and some of the signs you might not be working with the best buyer/seller.

We’re hoping that sharing our experiences here will help you avoid losing your own deals at the last minute.

If you’ve been digging our show so far, make sure to give us a review on iTunes, Stitcher, or leave us a voicemail by clicking on the right hand side of your screen.

Listen To The Full Interview:

Podcast: Play in new window | Download

What You’ll Learn From This Episode:

  • Too many unnecessary employees and loose relationships with contractors
  • Personality conflicts
  • Vendor or wholesaler requirements are too stringent
  • A last minute decline in revenue or traffic
  • Pending Legislation (or Litigation)
  • Seller is CRITICAL to the business
  • Seller had a litigious past

 Featured On The Show:

itunes sidebar subscribeStitcher-Subscribe-Button

 

Ep #4: Understanding Buyer & Seller Agreements

by Leave a Comment

Subscribe to our VIP LISTThis may very well be one of the less glamorous aspects when it comes to buying and selling online businesses, but ensuring there’s clarity on both the buy and sell side is the best way to avoid losing the deal. (And problems down the road) Most problem deals come down to a misunderstanding by one or more parties, so it’s important to get this right.

In this episode of the Web Equity Show, Justin and Ace dive into contracts, agreements, and how to make sure everyone’s on the same page from the first offer through closing and beyond. We’ll get into things like negotations, escrow, due diligence, terms, and training agreements.

Serious points of interest here if you’re looking to buy or sell an online business.

Listen To The Full Interview:

Podcast: Play in new window | Download

What You’ll Learn From This Episode:

  • Understanding buyer and seller agreements in terms of clarity, getting the deal done, and post sale support
  • Negotiating the sale price when buying a website
  • Understanding all the parties (from both the buyer and seller’s perspective) and agents that might be involved
  • Pros and cons in using Escrow when buying/selling online businesses
  • Discussing the process when it comes to due diligence and closing the deal
  • Talking about terms
  • Training or on-going support after the deal is done
  • Post deal consideration that both buyer and seller need to be aware of
  • Being specific about all the different aspects of the agreement

 Featured On The Show:

itunes sidebar subscribeStitcher-Subscribe-Button