NY Law Firm Announces Assistance in the Sale of Online Businesses

Law firm now assisting in the sale of online businesses. The press release discusses how to estimate what your business is worth.

LONG BEACH, NEW YORK, UNITED STATES, August 3, 2021 /EINPresswire.com/ -- Rosenbaum, Famularo & Segall, P.C. announced today that it is now assisting in the sale of Amazon based businesses. Selling a business can be the most exciting yet stressful time in an entrepreneur’s life. Before you can sell a business, you need to have an idea as to how it will be valued by others. While you will not know the true val-ue of the Amazon business until it is actually sold, it is of utmost important to estimate what your business could sell for.

For most Amazon businesses valued between $500,000 and $1,000,000, the Seller’s Discre-tionary Earnings method (“SDE”) is used. This is a calculation of profit before tax and interest of a business before the owner’s benefits, non-cash expenses, extraordinary one-time invest-ments, and other non-related business income and expenses. Larger companies typically use EBITDA, or earnings before interest, taxes, depreciation, and amortization.

Most Amazon business are valued between three to five times annual profit. If the selling price of your business is currently too low to sell now, there are certain factors that can make your business more valuable.

Business owners can create a unique product or start a private label. To buyers, FBA business-es that simply buy and resell products are the riskiest businesses to purchase.

The age of a business is also very important to buyers. Most buyers are seeking businesses that are over three years old. If you are attempting to sell a business that has been around for under a year, you should expect low-ball offers.

If you have a ton of competition or if it is easy for competitors to enter the market with a similar product, buyers value the company significantly lower than if your company holds a patent.

“All e-commerce business owners should be educated on valuing and increasing the value of their companies,” said David Miller, Esq., managing attorney of the firm’s business law depart-ment. “If you are unsure whether you received a fair offer, you should calculate your SDE or EBITDA and see if it is between three and five times your annual profit.”

Amazon or other e-commerce business owners looking to learn more can access the firm’s Business Law Library or visit its dedicated Business Law YouTube page.

About Rosenbaum Famularo & Segall, P.C.
Rosenbaum, Famularo & Segall P.C., is a law firm based in Long Beach, New York, dedicated to serving sellers, either individuals or companies, on Amazon.com and other Amazon websites around the world. The firm has staff in New York, Shenzhen, China and Yiwu, China. Interested sellers can contact the firm at AmazonSellersLawyer.com.

David Miller
Rosenbaum Famularo & Segall, P.C.
+1 2122955813
davidm@amazonsellerslawyer.com