Deal Structures When Acquiring & Exiting Online Businesses with M&A Advisor with Chris Guthrie

For today’s episode, we're diving deep into the intricacies of acquiring and exiting online businesses. Joining us is Chris Guthrie, a seasoned M&A advisor from Quiet Light, a name many of you are already familiar with. Chris has a wealth of experience, having bought and scaled various online businesses, from content sites to e-commerce and SaaS businesses.

Chris shares his journey into the world of online business acquisitions, detailing how he started and scaled his ventures. We explore the different types of online business models he prefers and which ones he would choose if he were to acquire them again.

Chris provides his insights into due diligence, sharing stories and mistakes from his own experiences to help you avoid common pitfalls. He offers crucial advice for both buyers and sellers, emphasizing the importance of preparation and realistic expectations.

They also talked about the common deal structures in online business transactions, discussing financing options, cash down payments, earnouts, holds, and notes. Chris explains how these elements come into play and the need to consider both the seller's and buyer's perspectives.

Additionally, they analyze the current state of market multiples and how broader market trends can impact online business valuations. Chris shares his thoughts on the best times to acquire businesses, providing a timely perspective on market conditions.

Finally, they discuss the traits of the most successful sellers Chris has encountered in his career, offering you valuable takeaways for maximizing your exit strategy.

Tune in for an insightful conversation packed with advice and expert knowledge from Chris Guthrie.

 

 

Episode Highlights

02:29 - Chris’ journey into buying online businesses

04:00 - Motivation for building online businesses

22:26 - Advice for business buyers

31:22 - Advice for business sellers

34:51 - How to Manage a business

Key Takeaways

➥ Managing multiple types of businesses, especially combining e-commerce with content, or SaaS, posed significant challenges due to the need for distinct focus areas like SEO, Amazon, Shopify, and advertising channels.

➥ Higher-value deals might include complex earnout structures, whereas smaller deals often aim for simpler, all-cash transactions to minimize post-sale complications.

➥ Buyers often need guidance on realistic deal structures, particularly understanding the market dynamics and avoiding “no money down” fallacies.

About The Guest

Chris Guthrie is a sell side online business M&A advisor and broker for Quiet Light. He’s bought and scaled his own online businesses, including content sites, e-commerce businesses and SaaS businesses.

 

Connect with Chris Guthrie

➥ https://www.linkedin.com/in/christopherdavidguthrie/

 

Resource Links

➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/

➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com

➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/

➥ GoDaddy (Website Hosting & Buying Domains) - https://bit.ly/3YiRkWV

➥ Market Muse (Content Marketing Software) - https://bit.ly/3Me39L0

➥ Rank Math (WordPress SEO plugin) - https://bit.ly/3Acyjf4

🔥Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥

➥ Empire Flippers - https://bit.ly/3RtyMkE

➥ Flippa - https://bit.ly/3wGa8r5

➥ Motion Invest - https://bit.ly/3YmJAmO

➥ Investors Club - https://bit.ly/3ZpgioR

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