Online Health Store Sold for $600K, Closed 23 Days After LOI
Rachel Horner
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2 min read
About the Business
Industry: E-commerce – Online Health-Products Retailer
Location: Northeast (relocatable)
Size: $750K–$1M in annual revenue, $150K–$200K in cash flow
Sale price: $600,000
Listing to signed LOI: 93 days
Signed LOI to close: 23 days
The Challenge: An Owner With Too Much on His Plate
The owner had run the store for more than a decade and was stretched across several other businesses. His day-to-day manager didn't want to buy it, so he needed an outside buyer who could grow it.
93 Days to a Signed LOI: Finding a Strategic Buyer
What happened at every stage
Valuation: Baton prepared the valuation and listing, presenting the store as a relocatable online business with recurring subscription customers.
Buyer Outreach: 112 buyers viewed the listing and 61 opened the data room. At the owner's suggestion, Baton also ran targeted email campaigns to competitors, and the owner of an established online supplement company signed Baton's NDA while they were going out.
Offer Selection and Negotiation Support: Several buyers submitted offers, and the Baton advisor negotiated price and terms with the strategic buyer. She kept the other offers warm as backups until the owner signed.
Diligence and Closing Support: Baton pushed for a close before the holiday weekend, and the first diligence meeting took place the day after the LOI was signed. The deal closed 23 days after the LOI.
The Results
The buyer is the owner of an established online supplement company who is growing through acquisition, and he runs the business today. Through Baton's process, the business:
Sold for $600,000 in an asset sale of the whole business
Went to a strategic buyer in the same industry
Closed with no SBA loan or seller note, 23 days after the LOI
What's next for the owner?
The owner sold to focus on his other ventures, after a 30-day transition for the buyer.
Advice and Lessons for Future Sellers
Your competitors may be your best buyers. Outreach to competitors reached the strategic buyer who closed the deal.
Keep backup offers alive. Holding other offers in reserve gave the owner options until the LOI was signed.
A cash buyer can close fast. With no lender in the deal, it went from LOI to close in 23 days.