Data request before an ecommerce store deal

searcher profile

February 13, 2022

by a searcher from Hebrew University of Jerusalem in Israel

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.

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commentor profile
Reply by an investor
from Union College in New York, USA
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.
commentor profile
Reply by a searcher
from Western University in Waterloo, ON, Canada
Looking for industry information in the med spa space for Canada. Industry averages, pay norms etc. Any suggestions on best sources for this?
commentor profile
+1 more reply.
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