Data request before an ecommerce store deal

by a searcher from Hebrew University of Jerusalem

2 years ago

Hi all,
I am negotiating with a seller to acquire an eCommerce store. General parameters of the store - a cosmetic brand with private label products, yearly results - $500K revenues, $150K SDE. Price ~$320K.
I can't feel comfortable setting an offer without really understanding the LTV/CAC rate as without it, I will not fully understand the PPC options and if there is a potential to scale. The seller doesn't seem to have the technical know-how to calculate it properly.
It is legitimate to ask for an export of past orders (for the last two years, let's say) before signing an LOI? It's obvious that I will not need email addresses (she can code it to serial numbers, just so I can identify each).
I appreciate your help.

1 like
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3 comments

searcher from Hebrew University of Jerusalem

Thank you Jamie. That makes sense

2 years ago | like reply | 0 likes

investor from Union College

The seller would likely be hesitant to send you that level of detail pre-LOI. In my opinion, the best way to handle this would be to submit an LOI with a closing contingency of LTV/CAC ratio meeting or exceeding your threshold to be discovered in due diligence.

2 years ago | like reply | 2 likes

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