Buying and Selling Adult Sites, Part Ten

Once you’ve made your offer the work begins. If you’re working with a broker like Adult Site Broker, we handle the negotiation for you.

Let’s assume the seller doesn’t accept your offer; they may then make a counteroffer. If you decide that you’re willing to pay more, you can either accept their counteroffer or counter back to them with a lower amount.

A good rule of thumb is to always leave room to negotiate. So, don’t make an offer that is the absolute most you’re willing or able to pay right out of the gate. If you do that, then you have nowhere to go if the owner counters your offer.

Once you and the of the site have come to a deal then it’s time to do some due diligence beyond that which you’ve already done.

During the initial process of looking at the site, you should have asked a lot of questions of the site’s owner(s). In the case of a paysite, you should have by this point inquired about how many joins and rebills there are per day, what billing methods are used, asked specific questions regarding content production, the site’s hosting and any other pertinent questions you may have had.

During due diligence, you need to make sure everything is where you need it to be technically to integrate it with what you’re already doing. If you are not personally tech-savvy, you should enlist a developer/coder to help you explore these questions, so that in the end, you come away satisfied that the property you’re buying is going to work for you.

Once those questions are answered to your satisfaction, you should either have the seller or you draw up a sales agreement. I always advise my clients to do the agreement. Why? Because that way you can dictate the terms of the sale. Whether you’re the buyer or the seller, having a clear agreement helps both parties, by setting the rules, defining expectations and clearly laying out the responsibilities of all parties to the transaction.

The process doesn’t end with the drafting of the proposed deal, of course; you should be prepared to have the seller’s attorney change some of the rules and other aspects of the proposed deal. Nothing is final until everything is signed off on and money changes hands, so make sure you negotiate carefully and comprehensively to avoid signing a deal that’s disadvantageous to you.

At Adult Site Broker, another service we offer for our clients is to write a letter of intent prior to the sales agreement being done. This gives your attorney a road map of the terms and conditions of the agreement.

The letter of intent — and even more so the agreement – will have all the terms involved, including who pays for everything. Who pays for escrow for instance? This can be paid by the buyer, the seller or split between both parties. In most cases, the buyer pays for escrow, but keep in mind that everything is negotiable in these deals.

Next time we’ll discuss the process of completing the agreement with your attorney.

To contact Adult Site Broker with any questions about what you’re reading here, or about buying or selling adult sites or companies, go to our contact page here.