E274: How Due Diligence Helps You Sell Your Ecommerce Business

Just as the title says, this episode is all about helping you get a better sense of how the due diligence process works by talking about a bit about how it was done for a brand we sold - ColorIt.com.

I’m joined by Chris Yates and Brian Diener, from Centurica, a company that helps online business buyers conduct due diligence on prospective acquisitions. They not only handled the due diligence on ColorIt but also served as a go-between for myself and the new owners to ensure that this part of the buying process went as smoothly as possible.

Chris provides a bit more detail about the Centurica through the following:

• What the company does (4:22)
• The process of doing due diligence (5:35)
• Potential costs for the service (7:14)

Brian, who did the actual due diligence on ColorIt, talks about how it was done.

• Verification process (13:17)
• Accuracy of splitting up fees (15:02)
• Checking supplier relationships (16:47)
• How P&Ls are reviewed (19:45)
• What goes into a client report (21:09)
• The results and how we reacted (27:47)

Learn more about Centrica's services from the website or book a free phone consultation. 

Get the full picture of what went down with the ColorIt sale when you listen to these episodes.

• E246: Why I Sold ColorIt.com
• E247: Preparing for the ColorIt Sale with Joe Valley – Part 1
• E248: Preparing for the ColorIt Sale with Joe Valley – Part 2
• E249: How Our Filipino Team Reacted to the ColorIt Sale

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If you have any questions or comments, feel free to leave them below. Happy selling!