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Email Jason to find out how he can help you and your business ➡️ [email protected]

Check out GW Partners Growth Consultants ➡️ https://www.gw.partners/ 

🗣In this episode of the Dropship Unlocked Podcast, hosts Lewis Smith and James Eardley welcome Jason Somerville, an expert in investment banking and strategic advisory. 

Jason shares his insights on scaling eCommerce businesses, capital markets, and Mergers and Acquisitions (M&A). Join us as we explore how strategic planning can elevate eCommerce brands to their full potential.

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Links and Resources Mentioned:

Pick up a copy of Lewis’ book: https://htabook.com 

Get Shopify for £1 a month for 3 months: https://www.dropshipunlocked.com/shopify 

Get a free trial with a professional phone line: https://www.dropshipunlocked.com/circle 

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Key Takeaways:

★ Decoding Key Financial Terms: Explanation of capital markets, M&A, and strategic advisory, and their relevance to scaling eCommerce businesses.

★ Role of Strategic Advisory: How strategic advisors contribute to the growth and transition of eCommerce brands, preparing them for mergers and acquisitions.

★ Strategies for Scaling: Foundational strategies for building strong eCommerce brands and increasing their market value.

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Learn More:

 ➡️ When people are ready to create time and financial freedom for themselves, they visit - https://www.dropshipunlocked.com/free?el=blog-74-investors-guide-jason-somerville

 ➡️ Subscribe to The Dropship Unlocked Podcast to stay up-to-date on the latest episodes, and leave a like to help others discover the show.

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Topics Discussed:

In the "Sell Your E-Commerce Store for £10M" episode of the Dropship Unlocked Podcast, Jason Somerville shares insights on building a successful e-commerce business with the goal of maximising its value for a high-stakes sale. With expertise in investment banking and entrepreneurship, Somerville discusses strategies for growing and scaling a business, understanding its unique value proposition, and structuring it for optimal value. He emphasises the importance of thorough research, proper business planning, brand development, and marketing strategies. Somerville also shares his experience in mergers and acquisitions, explaining the process and the significance of understanding a business's fundamental components. He encourages entrepreneurs to seek advice from advisors and investment banking firms when preparing to sell their business. Additionally, Somerville addresses a listener's question about facing resistance from suppliers due to young age and offers advice on professionalism and effective mentorship.

• 00:00:00 In this section, Jason Somerville shares insights on building an e-commerce business into an attractive acquisition target for buyers. With nearly two decades of experience in guiding companies through mergers, acquisitions, and increasing their asset value, Jason discusses strategies to maximise a company's valuation in a competitive market. He emphasises that it's not just about growing the business but strategically scaling it with the eventual sale in mind. Jason's expertise in investment banking and entrepreneurship makes this conversation essential for any e-commerce entrepreneur considering selling their business for a high multiple.

• 00:05:00 In this section, Jason Somerville shares his journey from a corporate career in finance to becoming an entrepreneur and business owner. He explains that while he didn't have an entrepreneurial background, he developed a strong interest in business as he progressed in his finance career. He started to see the potential of creating and growing businesses as valuable assets. Jason describes his experience in investment banking and hedge funds, where he was involved in various stages of businesses, including capital markets and mergers and acquisitions (M&A). He explains that M&A involves a buyer acquiring an entire business or two businesses merging into one. He also mentions the importance of understanding the fundamentals of a business and the principles that increase its value.

• 00:10:00 In this section, Jason Somerville discusses the concept of mergers and acquisitions, explaining that a business is made up of various components, including people, products, intellectual property, customers, and cash flow. To value and predict the future of a business, potential buyers or acquirers must understand its fundamental components and market trends. Experience in the specific market is beneficial but not necessary. GW Partners, the company Jason works for, assists businesses in planning for future sales, helping them enhance desirable aspects and address potential issues to increase their value in the eyes of potential buyers. The process involves marketing the business to potential acquirers using a tried and true approach similar to that of investment banks.

• 00:15:00 In this section, titled "Sell Your E-Commerce Store for £10M," the speaker, Jason Somerville, discusses the importance of understanding a business' unique value proposition before focusing on numbers when aiming to sell a business for a significant amount. He emphasises that a clear understanding of the value a business brings to the market keeps the founder focused and helps navigate day-to-day operations. Jason also mentions that businesses without a unique selling point may not be sellable or may ultimately fail. To help entrepreneurs figure out their unique selling point, he advises conducting thorough market research and speaking to customers to understand what they value about the business.

• 00:20:00 In this section, Jason Somerville discusses the importance of having a well-planned business idea and the significance of setting up a company with the end goal of selling it in mind. He emphasises the need for thorough research before starting a business and the importance of considering the market and business plan. Somerville also advises entrepreneurs to start thinking about the structure of their company from the beginning, including legal considerations and ownership structures. He gives the example of the Qualified Small Business Stock (QSBS) tax benefit in the US, which requires a C Corp structure to take advantage of, and warns against missing out on such benefits due to late company structuring.

• 00:25:00 In this section, Jason Somerville discusses the importance of proper business structuring and financial planning for e-commerce store owners aiming for a £10M exit. He emphasises the significance of having a well-thought-out operating agreement, Corp structure, and tidy bookkeeping. Additionally, Somerville advises entrepreneurs to consider their product sourcing and intellectual property protection, as well as focusing on driving organic traffic for their businesses, as these aspects are valued by potential buyers. He also shares his experience that entrepreneurs often underestimate the capital they'll need and the time it takes to build a successful business.

• 00:30:00 In this section, Jason Somerville discusses the importance of building a diverse marketing strategy and partnerships with multiple suppliers to increase the value of an e-commerce business. He emphasises the significance of brand development, which allows a company to establish a connection with customers and earn the right to have repeated conversations with them. Acquirers look for brands that resonate with a specific group of people, making it a valuable asset in the e-commerce industry. While product focus can be easier to scale, brand building is a longer-term investment. Other criteria for maximising a business's value include exclusivity deals with suppliers and a balanced approach to acquisition channels.

• 00:35:00 In this section, Jason Somerville discusses the importance of building a brand for e-commerce businesses, particularly when considering an exit strategy. Brands provide longevity and stickiness to consumer bases, which is attractive to acquirers. For companies looking to sell, the process can take anywhere from four to six months if the business is ready, or up to two years if there are areas that need improvement. During the preparation phase, business owners should focus on building a strong business and seeking advice from advisors. When it's time to put the business on the market, they can work with investment banking firms like Jason's, which target potential acquirers and build interest through targeted outreach and conversations.

• 00:40:00 In this section, Jason Somerville discusses the process of selling an e-commerce store for a large sum, such as £10M. He explains that building excitement and generating competition through an auction-style bidding process can lead to a Letter of Intent (LOI), due diligence, and eventual closing. For smaller businesses, broader platforms might be more suitable. Jason encourages entrepreneurs interested in selling their e-commerce business to contact him directly at [[email protected]](mailto:[email protected]) for advice and guidance. He emphasises the importance of preparing businesses for serious investor interest and attracting substantial wealth through strategic market positioning and operations. Jason's approach to combining these elements can benefit e-commerce owners at any stage of their journey. For additional resources, check out the support available at GW Partners and the comprehensive guide "The Home Turf Advantage" available at HTAbook.com.

• 00:45:00 In this section, host Jason Somerville addresses a question from a listener named Benjamin about facing resistance or challenges from suppliers due to his young age. James shares his personal experience of starting his business at the age of 23 and never feeling disadvantaged by his age. He explains that suppliers are primarily interested in the results that young entrepreneurs can bring to their business, rather than their age. James emphasises the importance of being well-prepared and knowledgeable in the niche and drop shipping business model to overcome any potential discrimination based on age. He encourages young entrepreneurs to focus on their professionalism and effective mentorship to build great partnerships with suppliers. The episode concludes with a thank you to a recent review from a listener and a call to action for listeners to leave a review and subscribe to the podcast for more strategies and success stories.

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