BUYER REPRESENTATION FOR PURCHASE OF ECOMMERCE BUSINESS?
Asking this question for a friend...
My friend is exiting a (8-figure) restaurant business and looking to acquire an e-commerce business to supplement his income in the short term. He doesn't have a lot of experience with e-commerce but he's overall very business savvy. He has been in talks with a company called eCommerce Lending to work with their buyer representation side of the business. The idea is that they will present him with e-commerce acquisition opportunities. The fee for this is a monthly retainer ($2k - $3k) plus 5% fee on the purchase price of the business.
He knows that the e-commerce space is very competitive so he asked for my thoughts on whether this type of service would give him an edge compared to other buyers. He also wanted thoughts around the fee (retainer + 5%).
I did not have a great answer so I'm hoping to tap into the collective wisdom here. Does anyone have some thoughts or experience that they can share? I'll pass on to him whatever I learn.