Southeast Online Retailer Sold for $1.15M After 2 Offers

About the Business

• Industry: Retail – Multi-Marketplace E-Commerce (Home, Garden and Outdoor Products)

• Location: Southeast

• Size: $2M–$2.5M in annual revenue, $200K–$300K in cash flow

• Sale price: $1,150,000, including $425,000 of inventory and a $25,000 vehicle (asking price: $750,000 for the business, excluding inventory)

• Listing to signed LOI: 93 days

• Signed LOI to close: 105 days

The Challenge: A Fast Sale With Inventory on the Shelves

The owner was relocating and had other ventures to build, so he wanted a fast sale. The buyer would also need to take on a warehouse full of inventory.

93 Days to a Signed LOI: From 150 Buyers to One Deal

What happened at every stage

1. Valuation: Baton listed the business at the owner's $750,000 asking price, with inventory to be priced separately at cost.

2. Buyer Outreach: Baton marketed the listing on its marketplace, a BizBuySell ad and a competitor outreach list, and its weekly updates tracked 150 buyers through the process. The owner met six of them, and two toured the warehouse in person.

3. Offer Selection and Negotiation Support: After the owner turned down a mostly seller-financed offer, a first-time buyer offered $650,000 for the business plus up to $300,000 of inventory. Baton carried the owner's $700,000 counter and packaged the full terms, and the buyer signed at $1.15M total, raising the inventory figure to $425,000 himself.

4. Diligence and Closing Support: When the buyer asked about lenders, Baton introduced its preferred SBA lender, who funded the loan. The deal closed 105 days after the LOI with a seller note the lender required.

The Results

The buyer is a first-time individual buyer who took over operations through a new company. Through Baton's process, the business:

• Sold for $1,150,000: $700,000 for the business, $425,000 for inventory and $25,000 for a work vehicle

• Closed with $900,000 in cash at closing, backed by an SBA 7(a) loan, and a $250,000 seller note

• Drew 2 written offers after the owner met 6 buyers

What's next for the owner?

The owner is focused on his other ventures after two months of in-person training and three months on call.

Advice and Lessons for Future Sellers

1. Price inventory separately. Valuing stock at cost from a full count let both sides agree on the business and the inventory one piece at a time.

2. Keep a backup buyer. A third buyer stayed interested while the LOI was negotiated.

3. Line up financing early. A lender introduction during LOI talks kept the SBA loan moving.