Looking to Buy an Online Business

[alexrostman]

Hello Guys,
I have around $200,000 available and I would like to buy an online business.

I have reached BizBroker24 an online E-Business and Mergers and Acquisition Company, they were offering me a drop shipping ecommerce business for $150,000. This business generated around $80,000 per year. I would like to know if you believe the price of this business is too high considering that it makes only $80,000

What do you think about it?

Thanks!

 

[Domainant]

Well, that depends. Did the current owner prove their earnings from the business? Are you guaranteed to keep the relationship with the wholesale folks that he current uses in his dropshipping business? There's a lot more information that is needed here.

 

[Foroux]

Will the seller sign a non-compete agreement for a certain number of years? It would be a huge red flag to me if that wasn't taken care of. I hope you'll come back and tell us what you decided to do.

 

[marsh]

Assuming that $80,000 is the net amount after all other expenses, it would take you roughly two years to recoup the initial investment. I would use this as a basis for making the decision of whether or not to buy. @Domainant and @Foroux raise very important points that you should (as well) consider.

 

[Foroux]

I hate it when people ask a question and then disappear. It's terribly unsatisfying. Did you buy the business? Was it worthwhile if you did? I want to know the outcome. Otherwise, it's like reading a good book and stopping in the middle.

 

[tulip]

@Foroux, I would also want to know how this eventually ended up; what kind of decision was made and what informed this. At times people get caught up with commitments but hopefully, he'll be back soon.