In today’s times, with the rise in online business investments, there is also a high demand for content websites. Due to its strong growth opportunities and endless potential, there are many investors who are willing to pay large sums of money to pay for websites that meet their criteria of topic and service.
So, if you want to position your content website to sell, then there is a good chance that you will be able to find the right buyers, that is if you follow the right process and have an effective strategy to have a high success rate at it.
This article will discuss the steps that are required to be taken by you to be able to successfully sell your content website.
How to position your content website to sell
Similar to any business that exists in the market, there are several steps that involve selling a content-based website. No matter what area or topic your website discusses and covers, there are some very common boxes that are checked off during the process.
For website owners who are smart enough, the process of selling starts prior to even before they list down their business for sale. Only when you start your planning ahead, are you able to maximize the value of your business and make sure for a smooth and quick business sale.
Listed below are the steps involved for the sale of a content-based website:
Preparing the website for selling
It goes without saying that you would have spent most of your time as well as money on building up your content website. So, it makes even more sense if you ensure that you are well-positioned at the time of the sale. If you want to maximize the value of your business it is crucial that you make plans beforehand. By just following a few quick and easy key steps, you will be able to achieve better outcomes.
For positioning your business for sale, you should:
- Identifying your growth opportunities
- Reducing or eliminating any risks
- Ensuring that you have a record of the detailed financial statement
- Implementing the use of documentation practices
- Automating all of your core business processes
- Ensuring that your business is easy to manage
Understanding and valuing the business
Understanding as well as valuing your content-based website is an essential step for positioning your website. So, it is better if you receive a business valuation six to twelve months before you actually get ready for the sale. And, sometimes it is even advantageous and smarter to plan other decisions ahead of time.
Getting a valuation beforehand allows you to understand the other steps better which will help in increasing the value of your business. The valuation process, in general, provides you with insights related to your business as well as a roadmap to a successful sale.
Creation of the marketing package
If a potential buyer wants to make an informed decision, they will first need to understand your business and website. And, to do so, they will require all of the relevant information regarding your content-based website.
That is where you will be in need of a qualified advisor who will help you with the creation of a well-presented marketing package. This marketing package should contain all the crucial information about your content website.
The marketing package must include:
- Detailed information of the profit and loss
- Adding the back schedule
- The products and services that you offer
- Your monetization strategy
- Brief description of the responsibilities of the owner
- The strengths and weaknesses of your website and business
In short, your marketing package must provide your potential buyers with a clear description and understanding of the website and business. One thing that you need to remember is that you need to present your business well as well as be transparent at the same time.
Putting your business on the list
Once you are through with the procedure of making and presenting your marketing package, your next step is to list down your business for the sale. Now, if you are working with an advisor who is qualified, then you should be able to have access to their large network of qualified buyers.
What this will do for you is that you will be able to meet with buyers who are serious about acquiring the business. Even though listing your business for sale is a big step, it is one of the few steps that requires you to put in a significant amount of effort. This means that most of your effort would be put into the steps before this. And after this step the process is complete.
Communicating with the potential buyers
As explained before, the marketing package will help potential buyers understand better about your business. But, they will have more questions for you if they are interested in your content-based website.
After listing your business, there will be buyers who will want to communicate with you. And, at times like these, you can have your advisor act as the “gatekeeper” who will ensure that only the qualified buyers get to reach you in your inbox.
During this, your advisor will help you with scheduling calls with these potential buyers. These phone calls will be very important because they will help the investors to know more in-depth information about your website.
This will also be a good opportunity for you to evaluate all of the different buyers. This will also help you to know that your content-based website is going in the right hands. While you communicate with these buyers, you need to remember to be completely honest while answering them.
And also remember not to hide your personality. Instead, try to create a genuine connection with the buyers. Because people like o invest and communicate more and with ease only if they trust you enough.
Receiving the letter of intent
If things go well after the process of communicating with buyers, then you will receive an offer. In this situation, you will receive that offer in the form of a Letter of Intent (LOI). The LOI will explain to you all of the key details about the offer.
Generally, it explains and specifies the deal terms, purchase price, closing date, list of assets that will be transferred, and other important elements. Now, most of the time the LOI satisfies the terms of the goals of the seller. But, if in some situations it does not, then the seller may negotiate the terms, and secure favorable terms until both parties agree to them.
Signing the asset purchase agreement
Once, both the buyer as well as the seller agree on the terms of the deal, then they proceed to sign the Asset Purchase Agreement (APA). The APA is the master of all documents and it includes all of the details of the deal.
Mostly, the APA is based on the LOI, and because the APA is so important, it is good if you have it reviewed by your advisor as well as an attorney. What you want to make sure is that the document accurately details everything about the deal and effectively protects your interests.
Completing a proper inspection
When you are done signing the APA, you enter the due diligence stage. During this period, the buyer will verify the information that you have provided them with. Most of the time you will need to provide third-party reports that will help in verifying all of the business and financial information.
To make sure that this process takes place smoothly, you will be required to prepare yourself before this stage. It will be a good idea for you to prepare such reports before approaching this stage.
The most common due diligence items are:
- Your bank statements
- Your sponsored content revenue report
- Your content website traffic data
- Your social media analytics
- Your ad revenue report
- Your ad network report
- Your WordPress website analytics
- Your previous employee contracts
Each and every business is different so, the due diligence items may vary from one place to another. But, generally, most buyers want to know details around that criteria. But, as the content website and business owner, you will be required to gather up all of your old records as well as business information.
Closing the deal
Once, the buyer is satisfied he the due diligence procedure, you will then approach the closing deal stage. There are two steps in this stage- transferring the assets of the business and the transfer of the purchase funds.
To finish this process, the buyer will be required to purchase the funds in an escrow account. Most escrow accounts are held by a third-party attorney. Once the funds are transferred to the escrow account, then the assets of the business are transferred to the buyer.
For businesses in the content website line, these assets can be transferred by sharing passwords and by changing the information of the user’s account. In addition to this, the contractor or the employee agreements must as well be transferred to the new owner.
Training and transitioning
Closing the deal off with the buyer is indeed a big step. But, that does not necessarily mean that your role is complete once the funds are transferred to your account. It is followed by a period of training and transitioning.
This means that to familiarize the new owner with your content-based website you will be required to either train them or their staff. Depending on the level of their expertise and experience, you will accordingly need to adjust your involvement with them.
Sometimes you may either be required to just introduce and explain the basics about your website. Other times, you will need to give an in-depth explanation, training, and support. It is advised that the training period be discussed before closing the deal with the buyer.
To briefly explain as to where you can sell your content-based website there are many options available. If your website or business works on a small scale, it will make more sense for you yourself to list it down. There are many platforms available that let owners list their websites for the purpose of selling.
And, if your business has more value, then working with a qualified business advisor has many benefits of its own. With the help of proper guidance and knowledge, you will be smoothly able to position your content website to sell.