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Full list of all Amazon Aggregators: https://myamazonguy.com/amazon-aggregators-fba-acquirers/

HOW TO NEGOTIATE WITH AN AGGREGATOR
Joe Valley join us This week on My Amazon Guy to share how to negotiate with an aggregator.
  
“Price it right and you will get more buyers looking at it possible multiple offers and you will get to choose your offer.  Not always about the dollar amount, it often about the dollar amount and the deal structure.” -Joe Valley 

Joe Valley knows the 3 Things Aggregators work for and shares the power of “No, but-“.

0:00 Intro
6:45 - THE 3 THINGS AGGREGATORS WORK FOR:
7:13 - Working capital peg on the inventory
11:04 - Hold back
19:08 - Earn Out


22:55 - GENERAL SELLING TIPS & HOW ELSE TO MAKE MONEY?
Joe Valley says that people should get the value they deserve.


31:04 – IS A MASTERMIND AN ADD BACK? 
Yes.


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How to negotiate with an aggregator


Funded in 2007. 


3 Things Aggregators work for:

Working capital peg

Aggregators seek 2 months of inventory

No, but - a 3 month seller note

Landed cost of goods sold

Hold back

Might have been invented by Thrasio

Money set aside if the business falls off a cliff.

10-25% released in 12 months if the revenue remains 90% of what it was at time of closing

Recommend sliding scale

Negotiate view access to keep eye on things

In the event if they run out of inventory, out of X period, you get paid for.

How are they going to manage it?

May need an agency (Shameless plug My Amazon Guy!)

Earn out

Aggregator goal is to pay less up front and pay on an earn out.

Being dubbed as a “profit sharing plan” - % of a gross profit of the business.

Needs to be on top line revenue. Not EIBTA (Never do it on EIBTA).

When first doing a deal, and courting, and things are good.

General selling tips

How to avoid ignorance discount

Never work with just one

Price it right

Get the dollar amount and deal structure correct

SDE - Seller Discretionary Earnings.

How else to make money?

Calculate cash back on credit cards

Plan to sell, not sell to plan

Raised prices on Top Seller by $4. Let to $4,000 in increased profit. We did an adjustment in the add back schedule. Took total number of units sold x $4. Get a 3x multiple of $75,000. It gets missed. An aggregator won’t tell you about that.

Is a mastermind an add back?

Yes. 




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