We hope you are reading this from the comfort of your home or from an empty office and that you and your loved ones are all safe and healthy. And, if you can indulge me for a moment, I hope that you are remembering to find ways to exercise. There are ample apps and sites out there which you can follow along and all you typically need is your own bodyweight to get in a great workout. Now, let’s talk business.
Today’s story is about a deal that went sideways due to the Coronavirus pandemic. This is a highly successful and recognizable Amazon brand. It had been under an exclusive LOI for 45 days and was set to close at the end of March. However, the buyer was a publicly-traded company and was unwilling to complete any transaction during the turbulent market we’ve all witnessed. They wanted to extend the closing date well past where the seller was willing to do, and thus, it was re-listed.
What makes this deal particularly worthy of this mention is that the seller secured a guarantee from his supplier that assures up to one year of ingredients with a nominal deposit. This was sought to dispel any concern about a supply-chain delay. The seller has yet to exercise this as it has not been needed, and the verbal confirmation of this arrangement provided by the supplier can be put in writing as well as be available for a new owner. Additionally, the product should be somewhat immune to a total stay-at-home economy and an impending recession but we shall see. The buyer that had had it under LOI had also told us that they even had lab tests done on the ingredients and that the tests performed well. Significant due-diligence had already been completed.
It goes to show that, despite the current economic turbulence, there are still some great deals to be had when it comes to buying an online business.