Josh Dittrich sold two Amazon brands successfully and has now branched out into helping other brand owners. He shared his story with us in a recent interview, and the entire story was so valuable that we wanted to share his journey and his conclusions about the most critical aspects of the sales process.

How Josh Sold His Amazon Brands for Eight-Figures

When Josh spoke to us, it became clear that he is a very deliberate person who works with his team to get the best outcomes possible for his companies. Patient planning and process-oriented work paid off when he sold his Amazon businesses for eight-figures. 

But it all began with well-thought-out actions done early on while building and scaling the business. Here is an overview of the steps Josh took before and during the sales process:

Made sure the business was transferable. 

Josh emphasized that he spent time ensuring the business financials were up to par and creating processes and systems to keep profitable actions clear and ensure his brand was transferable upon sale. This is not something every brand founder does, but it is crucial to the overall saleability of a business.

Decided to sell.

The decision to sell a brand must be made with forethought and care. As noted above, Josh has a policy of keeping the business financials strong and clean. However, sometimes a brand owner doesn’t have their financials prepared, though they are determined to sell. This is a mistake. 

When you decide to sell, it’s vital to take a step back and look at the business from a buyer’s point of view. Is it transferable? Are the financials transparent? Are there places in those financials where the buyer can gain extra profit because the seller (that’s you) made a mistake? On top of all of this, there are questions like: How much inventory is in stock? Have you just released a product that you are currently losing money on – but which will make you money in six months? Do you have products ready for release which could be put on hold to attract a new buyer so that they make that initial investment?

Determining to sell helps you set the stage and look at your business in a new way.

Researched potential buyers.

We all have received buyer letters. Buying Amazon businesses is a hot market right now, but that doesn’t mean the companies making offers are the right buyers for your brand. Take time to research buyers and deep dive into what they can do for your business. That’s what Josh did. He formed a list of dozens of potential buyers for his brands.

Did buyer outreach. 

When he decided to sell his brands, Josh was determined to run a competitive process. That means he didn’t just reach out to one potential buyer. He reached out to all potential buyers that he felt would be a good fit to carry on his legacy. This resulted in six offers.

Ranked LOIs. 

If you are running a competitive process, you will have more than one LOI. You need a system to rank the LOIs your business receives so that all of your “musts” are met. Josh used a spreadsheet to show what various LOIs offered, what they didn’t provide, and how they ranked based upon his priorities. 

Ran a competitive process.

By ranking LOIs, Josh was able to run a competitive process. That means he could take the lower-ranking offers and return to the potential buyer, sharing that he had other offers which fit his priorities better. Then he gave those potential buyers a chance to improve their letter of intent. This kind of negotiation enables the brand owner (you) to leave the negotiating table with the best offer possible. Josh isn’t the only person to have success with this. We have seen offers increase by millions of dollars just because the seller ran a competitive process.

Picked the final buyer.

After creating energy and excitement around his brand, Josh picked the offer that best fit his needs and the needs of his business, his staff, and his brand. This may sound simple, but he took time to ensure that he not only got the best offer, but that closing would reflect an additional month of revenue, allowing him to use an extra month of financials and get an even stronger deal.

Here at Amazing Exits, we felt it was vital to share Josh’s experience with every listener and reader. It is not only interesting to see how one brand owner successfully sold his business, but the lessons learned along the way were essential to the successful sale. 

If you are a brand owner considering an exit, now is the time to begin planning. Careful and strategic planning now will help you make a bold and profitable exit later. 

Contact the Amazing Exits team today to begin planning for your Amazing Exit.