Fast, transparent and fair process to sell your brand to Heroes.
GETTING TO KNOW EACH OTHER
In a first call we would like to tell you more about Heroes. Who we are, how we operate, how we think, how our process works. We know you are busy running your own business, so we keep these meetings highly efficient and we will never show up late and keep you waiting - that’s our promise to you.
We also like to learn a bit more about yourself and your business. You should expect questions like “Why did you start this business?” and “How much profit did you generate over the last 12 months?”. We understand that some questions are too sensitive and we will not press you for answers if you are uncomfortable.
If our first call went well, and your business generally fits into our investment criteria we’d like to look at your numbers in more detail. Before we do that, we sign a Non-Disclosure Agreement (NDA), which protects you and ensures that any information provided to us is kept safe, will not be shared with third parties, and the data can’t be used to build a competing business with you.
ANALYSING YOUR DATA
After the NDA has been signed, you can either send us extracts from your Amazon account or preferably we ask you to authorise a third-party software (e.g. Sellerboard) on your Seller Central account, through which we can extract your Amazon sales information. Additionally, we will ask you to provide us with ASIN-level product costs, and your last freight invoices. We need this information to get the complete picture of the profitability of your business. Again, if the information is too sensitive to share, we can discuss alternative ways.
WE MAKE AN OFFER
Based on the information you have provided and our analyses we are able to present you with a Letter of Intent (LOI), which lays down our offer to you. In this offer, we present you with various terms underlying the offer, including (i) a valuation/purchase price, (ii) payment terms, (iii) a timeline, (iv) additional due diligence requests and (v) next steps.
DUE DILIGENCE & LEGAL DOCUMENTS
Should you be happy with the offer and accept it, we enter a “Due Diligence” phase, which means we take great care to fully understand your business. We might ask for supplier agreements, employee contracts (if any), audited financial statements, trademarks, rental/lease agreements, invoices and other documents.
In parallel, we start drafting the Purchase Agreements, which dictate the terms and conditions under which we buy your business (or part thereof). It’s important to get your legal advisor/consultant involved at this point. If you do not have one, we can recommend a number of good legal counsels, who have previously advised clients who sold their businesses to us. Working with somebody who has prior experience with selling Amazon brands will be beneficial.
“Closing” is the process of signing the Purchase Agreements and wiring the funds to your bank account. This process should happen concurrently, and typically it’s done by wiring the money to your legal counsel’s bank account, who will then release the funds to you after both parties have signed the agreements. At this point, you can open the bottle of Champagne and celebrate!
THINKING OF SELLING?
We're always looking for exciting companies. Please leave your details and a Heroes team member will get back to you within 24 hours. Looking forward to learning more about your business.