The EXITPreneur's Playbook: How to Sell Your Online Business for Top Dollar by Reverse Engineering Your by Joe Valley

Author:Joe Valley
Language: eng
Format: epub
Publisher: BookBaby
Published: 2021-04-21T21:02:02+00:00

Hmmmm. A buyer may look at this and wonder why total revenues are up just 45 percent (see the YOY Total Revenue image) and gross profit is up a whopping 137 percent in dollars, with 64 percent as a percentage of total revenues.

Could it be this business owner renegotiated and reduced COGS on some or all top-selling SKUs? Or is it because the previous year was a challenging one, and they met with an Advisor to help them get the business in great shape for a great buyer to take over at a great price? Note that gross profit as a percentage of total revenues looks consistent in the last twelve months. From February of 2018 through January of 2019, they were as low as 37 percent and as high as 48 percent. So perhaps it was a combination of both.

Buyers love analyzing these Key Metrics because it gives them the full picture of the business. When a business owner has access to and analyzes the Key Metrics regularly, they can pivot and adjust as needed to make sure they stay on track to their goals. Fly blind and, well, you can’t see.

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