How to make a successful web business purchase:
- Browse Our Site:
Take a look through our postings and chances are you will see something interesting.
- Do Your Homework:
A little bit of research can go a long way when buying an online business or digital asset. When you find an asset that interests you, check other postings on hatchit.us or elsewhere on the web to compare transaction details. Is the asset of similar quality and price to that which you could purchase elsewhere? How does the asset compare to the cost of creating or starting something similar on your own? If it's an established business, you might check online valuation calculators or get an opinion from a CPA or valuation professional.
- Reach Out to the Seller:
The hatchit.us website allows you to reach out to a seller anonymously to ask questions about the asset and agree on the price, terms, method of payment and the asset transfer. Meet the seller in person or set up a video conference to gain a better sense for who you are buying from. The seller may require you sign a NDA (Non-Disclosure Agreement) for confidentiality to protect the privacy of the information shared, but this is standard practice.
- Make an Offer:
If you find an online business or digital asset you want to purchase and are comfortable with the seller, don’t be afraid to make an offer. You may be surprised at how flexible a seller can be once an offer actually hits the table. There may be some negotiating back and forth before you agree on a price. Just be mindful of your “walk away” point so you don’t overextend yourself with the purchase.
- Develop and Sign a Bill of Sale or Asset Purchase Agreement:
The buyer and seller should agree to and sign a bill of sale or asset purchase agreement that transfers ownership of the assets from the seller to the buyer. Depending on the complexity and size of the transaction, a document can be very simple or very complex. The buyer and seller should determine whether they need an attorney to help draft a document for them, or whether they can use a template from our partner LawDepot.com to create their own. Be mindful that developing a document without the help of an attorney can place you at some risk. At a minimum, an agreement should identify the parties, specifically define what is being purchased, outline the purchase price and terms, including representations and warranties on the asset and its ownership, and describe how and under which state laws any disagreements will be handled.
- Transfer Assets and Funds:
Upon signing the bill of sale or asset purchase agreement, the buyer will make payment according to the agreement and the seller will transfer the asset to the buyer in the manner described in the agreement. Before extending payment, please read our FAQ on scams and fraud. We highly recommend conducting the transaction through our partner, Escrow.com, to ensure the asset is as represented before funds are released.
- Confirm Receipt and Satisfaction:
When using Escrow.com the buyer has the opportunity to examine the business assets and approve it prior to transferring funds to the seller. And, the seller has the opportunity to ensure payment has been made to Escrow.com prior to releasing his or her asset.