Online Parts Retailer Sold for $472K, Full Ask Plus Inventory
Rachel Horner
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2 min read
About the Business
Industry: E-commerce – Online Industrial Replacement Parts
Location: Remote
Size: $2M–$2.5M in annual revenue, 6 full-time remote employees
Sale price: $472,439 in total consideration, including inventory (asking price: $355,000 plus inventory)
Listing to signed LOI: 50 days
Signed LOI to close: 83 days
The Challenge: Making Time for Another Business
The owner also runs another company and wanted a buyer who could take this one further than he had time to.
“I own another business and want to dedicate all my time to it.”
50 Days to a Signed LOI: Walking Away From the Wrong Offer
What happened at every stage
Valuation: The owner and Baton set an asking price of $355,000, about 3.9 times cash flow, with inventory sold on top.
Buyer Outreach: 53 buyers viewed the listing and 12 opened the data room. The owner met with 3 buyers in the first seven weeks.
Offer Selection and Negotiation Support: The first LOI came with terms the owner couldn't accept, so the Baton advisor helped the owner set best-and-final terms, and the owner walked away when the buyer couldn't meet them. About two weeks later, a first-time buyer offered the full $355,000 plus inventory, and the LOI was signed five days after his first offer.
Diligence and Closing Support: Baton ran weekly diligence check-ins and pushed for an early inventory count, and the buyer's review found the financials within 1% of what was reported. The deal closed 83 days after the LOI.
The Results
The buyer is a first-time owner with a digital-marketing background whose plan is to keep the remote team and grow online sales. Through Baton's process, the business:
Sold for the full $355,000 asking price plus inventory, $472,439 in total
Closed mostly in cash, with a seller note and no SBA loan
Went from listing to signed LOI in 50 days
What's next for the owner?
The owner now focuses on his other company after a short handover.
Advice and Lessons for Future Sellers
Don't take an offer that doesn't work for you. Walking away from a weak first LOI made room for a full-price buyer.
Price inventory separately. Selling inventory on top of the business kept the full asking price intact.
Do the tedious work early. Pushing for an early inventory count kept diligence on track.