David Fairley estimates he has sold more than 20 online properties, but admits it was the sale of Hammocks.com—one of his first exits—that taught him the most.
Fairley had grown Hammocks.com into a seven-figure website with a pre-tax profit of more than $300,000 when he decided to put it up for sale. He received a “low seven-figure” offer and agreed to meet with the buyer.
That’s when things started to unravel.
The buyer questioned Fairley’s bookkeeping and dropped their price to around $700,000. Exhausted, Fairley felt cornered and decided the only thing he could do was to accept the lower price.
In this cautionary episode, you’ll learn:
- How acquirers use an opening offer to bait sellers into a conversation
- How sloppy bookkeeping can derail a deal
- The dangers of over-valuing your business
- The worst time to sell your business
- The tell-tale sign that an earn-out contract will never be paid
The Latest Built to Sell Forbes Column
Name Your Price, I’ll Set The Terms - Hammocks.com was a successful online business, so when founder David Fairley put it up for sale, he was confident it would fetch a king’s ransom. Only problem? It didn’t.