Ecom Exits Podcast

Thomas Smale, founder of FE International, one the largest e-business brokerages, provides insights on his dealings with e-Commerce merging and acquisition markets.

WHAT YOU'LL LEARN

• Background on FE International
• Understanding the Mergers and Acquisition market for FBA businesses
• Dealing with buyers
• Process of Selling an E-business
• Effect on Coronavirus on the market
• Tips for FBA’s

KEY POINTS

1. There is not much difference in the process of selling and buying a bigger or smaller e-business. However, bigger businesses take longer due to its complexity.
2. A seller must be willing to work with its broker in order to get the true valuation for his company.
3. Securing the terms of payment from the buyer is very important; most often, the consideration for the inventory is neglected. Likewise, it is also important to look into the transition period that is workable for both parties.
4. The Coronavirus pandemic has made a lot of parties nervous. However, the market is still there as the importance of going remote is highlighted.
5. It is important for sellers to think of his exit plan even if he has no interest in exiting. This will help guide him in making decisions for the company.
   

Rob te Braake, Able Finance CFO, joins us to discuss finance strategies for FBA and eCommerce sellers, preparing contingency plans and tops for long-term digital business success and increasing cashflow. Rob also shares his predicted outcomes of the CoronaVirus pandemic for eCommerce owners and advice on curbing the worst of it.

WHAT YOU’LL LEARN

• The role of the CFO
• Common mistakes of FBA and e-com sellers in finance
• Importance of the cash flow
• Changes brought about by the Coronavirus
• Increasing profitability

KEY POINTS

1. Looking and the past financial performance of the company, the CFO makes the financial forecasts that provide input on the company’s future strategies. 
2. Entrepreneurs need to balance their natural optimism with negative possibilities and be prepared to deal with it.
3. There is a need to also draw attention to the cashflow as most businesses become bankrupt not from loss but from running out of cash. There is a need to understand and manage the flow of money ensuring that the company is liquid and is able to respond to payables and emergencies.
4. Cash flow forecasting goes hand in hand with sales forecasting.
5. Current coronavirus situation will definitely change consumer behavior and may lead to recession. In this time, it is important to focus on preserving cash and not profit.
6. Understand the different financing options, especially drawbacks from each.
7. An exiting business would need to concentrate on profitability and good records meaningful to the buyer.

ABOUT

Rob is Dutch by origin and has been in Asia for more than a decade. He provides finance strategy consulting like setting up KPI’s and planning the cash flow. 

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

FBA Seller Gary Huang, Founder of 80/20 Sourcing and 7-Figure Seller Summit gives us a high-level view of the situation in China manufacturing and the proactive steps sellers can do to improve the supply concerns amidst the CoronaVirus pandemic. He shares tips in negotiating the cost of goods and giving a platform for successful sellers to share their strategies.

WHAT YOU’LL LEARN

• Update on the Coronavirus effect on China
• New ways of doing business in the Coronavirus environment
• General Tips for Sellers

KEY POINTS

1. In spite of the Chinese government’s lifting of the lockdown, it would be a long time for sellers to become fully operational due to a number of factors. Currently. Chinese sellers are operating between 30-50% production capacity only.
2. The coronavirus experience will also be imposing several changes in how manufacturers are currently operating. This includes allowing for longer lead time for suppliers to complete orders. It is important to do due diligence in speaking to suppliers to get a clearer picture of production timelines. Likewise, stocking up on raw supplies may become a norm since being out of stock is what hurt businesses practicing e-commerce the most. 
3. It is important that one maintains a relationship with their suppliers so that their company becomes top of mind with these suppliers. Go beyond just the relationship that business provides.
4. It is important for sellers to look for ways to negotiate prices by taking into consideration forex exchanges as well as how to deal with tariff expenses.

ABOUT

Gary was born and raised in the US. He is a second-generation Chinese who served as a Director of the sourcing department in China. He currently lives in Japan with his family.

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Alex Champagne, Director of Sales of Empire Flippers, talks about FBA market trends, best optimization practices, and tips on selling your business for the most money. He also touches on the significant impact of the CoronaVirus pandemic in the eCommerce industry.

WHAT YOU’LL LEARN

• Introduction on the Empire Flippers
• What are Buyers looking for in an FBA
• Steps Empire Flippers undertake in Selling an FBA
• Tips for FBA sellers

KEY POINTS

1. Empire Flippers is one of the most successful brokerages for FBA’s today. They have already sold 273 FBA’s over the years for more than $50 million. Last year alone, they sold 63 pure FBA companies at an average of 28 to 29x monthly multiples.
2. There are different buyers in the market. Some are just looking to invest while others are looking for acquisitions that would more business at a market they already know. What is crucial for these buyers is clear and clean financial records as well as prospective of the seller for growth in the business. In order to attract buyers, it is important for FBA’s to have the numbers the buyers are looking for.
3. It is also important for sellers to be completely transparent to buyers in order to secure their trust.
4. Empire Flippers have their own dedicated teams to help walk the seller through the entire process. There is a seller team that would help in the valuation of the company and a migration team that would help transition the buying process. This whole process takes an average of 3 months for sale to take effect.
5. Increasing profitability of the company and potential for growth are the two things that buyers are looking for from a seller.
6. The coronavirus has put a lot of people in a holding pattern that is affecting the transactions now.

ABOUT

Alex was running an FBA business before joining Empire Flippers. He exited from his business in 2014 and was working on a lot of other projects. He joined Empire Flippers 4 years ago.

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Join Nate Ginsburg, the 7-figure ecom exit strategist, as he talks to industry leaders on how to maximize your business for your dream exit.

If you want to get more sales, automate your operations, and improve your cashflow for your ecommerce business, you need to understand what it takes from experts who know how to do it best.

Listen to Nate's story from newbie wantrepreneur to 7-figure business owner and investor.