Ecommerce Exits Podcast | Inside look at Building, Buying, Selling and Scaling Ecommerce Businesses - Ben McAdam Talks Pre-Exit Accounting Fundamentals

Ben McAdam Talks Pre-Exit Accounting Fundamentals

04/06/20 • 52 min

Ecommerce Exits Podcast | Inside look at Building, Buying, Selling and Scaling Ecommerce Businesses

Virtual CFO Ben McAdam shares the importance of getting to know the fundamental roles of your accounting team and the nitty gritty of forming and selling your company. As well as his role in coaching businesses by focusing on the numbers and helping you grow them.

WHAT YOU’LL LEARN

Role of financial tasks in Growing an FBA
Introducing the Virtual CFO/Profit Coach
Tips in maximizing Profit

KEY POINTS

The various financial tasks in a business (bookkeeping, accounting, CFO) is crucial in providing a clear picture on the condition and growth capacity of any company. Financial reports are important in informing on the strategies that a company may undertake to ensure a successful and profitable undertaking.
It is important to have a change of mindset on how one views taxes and hiring. Attitudes of wanting to pay the lowest tax possible as well as not delegating jobs that the owners are doing may hamper the potential growth of the company.
The Virtual CFO not only provides an objective eye in reviewing the financial and operational standing of a company but more importantly provides cash flow projections. This will enable owners to make informed decisions on which expenses the company would be able to bear in the long run.
To ensure the success of a business and adequate capital to respond to changes, there should be a good gross profit margin. This is often neglected when pricing a product and have led to the failure of businesses.

ABOUT

Before becoming a Virtual CFO or Profit Coach, Brian worked as a bookkeeper and an accountant. This has prepared him in identifying the crucial areas of a company’s financial performance that are often neglected.

🎧🎧🎧

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WHAT YOU’LL LEARN

Role of financial tasks in Growing an FBA
Introducing the Virtual CFO/Profit Coach
Tips in maximizing Profit

KEY POINTS

The various financial tasks in a business (bookkeeping, accounting, CFO) is crucial in providing a clear picture on the condition and growth capacity of any company. Financial reports are important in informing on the strategies that a company may undertake to ensure a successful and profitable undertaking.
It is important to have a change of mindset on how one views taxes and hiring. Attitudes of wanting to pay the lowest tax possible as well as not delegating jobs that the owners are doing may hamper the potential growth of the company.
The Virtual CFO not only provides an objective eye in reviewing the financial and operational standing of a company but more importantly provides cash flow projections. This will enable owners to make informed decisions on which expenses the company would be able to bear in the long run.
To ensure the success of a business and adequate capital to respond to changes, there should be a good gross profit margin. This is often neglected when pricing a product and have led to the failure of businesses.

ABOUT

🎧🎧🎧

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Previous Episode

The Insider’s Guide to Selling Your FBA Business from over 800+ deals with Thomas Smale, Founder of FE International

Thomas Smale, founder of FE International, one the largest e-business brokerages, provides insights on his dealings with e-Commerce merging and acquisition markets.

WHAT YOU'LL LEARN

Background on FE International
Understanding the Mergers and Acquisition market for FBA businesses
Dealing with buyers
Process of Selling an E-business
Effect on Coronavirus on the market
Tips for FBA’s

KEY POINTS

There is not much difference in the process of selling and buying a bigger or smaller e-business. However, bigger businesses take longer due to its complexity.
A seller must be willing to work with its broker in order to get the true valuation for his company.
Securing the terms of payment from the buyer is very important; most often, the consideration for the inventory is neglected. Likewise, it is also important to look into the transition period that is workable for both parties.
The Coronavirus pandemic has made a lot of parties nervous. However, the market is still there as the importance of going remote is highlighted.
It is important for sellers to think of his exit plan even if he has no interest in exiting. This will help guide him in making decisions for the company.

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Next Episode

The Truth About SBA Loans for Ecommerce from Over $250 Million in Lending with Stephen Speers, CEO of EcommerceLending.com

Stephen Speer, CEO and founder of E-Commerce Lending.com, the only lending company for e-Commerce, walks us through how they can help people get financing for either selling or buying an e-commerce business

WHAT YOU'LL LEARN

Introduction to E-Commerce Lending.com
Seller Qualifications to secure Financing
Importance of Tax Returns and Risks of Fund Co-mingling
Determining Factors and Terms for Loan Financing
Effect of the Coronavirus to the Industry

KEY POINTS

Books are reviewed and cleaned up, removing the co-mingling of funds of various businesses and the inclusion or personal expenses in the financials. All this will affect business valuation and ultimately the ability of the business to secure the financing.
Aside from the company financial statements, the tax returns are also reviewed.
There is a need to show that the business generates enough cash flow to cover debt repayment.
An e-commerce intending to sell would only to have operated for two years in order to qualify for financing.
Matching the right buyer to the interested seller has been crucial in ensuring successful debt re-payment.
The coronavirus has affected some lenders to pause releasing funds; nevertheless, the selling market is still very much active.

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